EU fleet emission rules transform electric cars into cash cows for carmakers – commentary

The new EU fleet emission limits taking effect in 2020 mean that some carmakers will in effect save more than 10,000 euros per electric car sold due to avoided penalty payments, argues car industry expert Ferdinand Dudenhöffer in a commentary for business daily Handelsblatt. “After the fall of diesel cars, these limits are only achievable by selling a considerable number of electric cars,” writes Dudenhöffer. A carmaker selling 100,000 vehicles with average emissions of 130 g CO₂ would have to pay an annual penalty of about 330 million euros because the new EU limit is 95 g. The carmaker would avoid the penalty altogether if it manages to sell about 27,000 electric cars – translating into a saving of 12,350 euros per electric vehicle. “The unloved child turns into a cash cow. The EU regulations trigger a surprising price and value mechanism,” writes Dudenhöffer.

Read the commentary in German (behind paywall) here.

For background, read the CLEW dossier BMW, Daimler, and VW vow to fight in green transport revolution.