Jaguar Land Rover Prepares to Pay $118 Million in Emissions Fines

Matt Posky
by Matt Posky

Jaguar Land Rover is putting 90 million pounds ($118 million) into its rainy day fund in case it’s fined by the European Union for failing to meet CO2 emission-reduction targets. Delays in launching plug-in hybrid models, stalled by WLTP efficiency estimates that didn’t quite reach a best-case scenario, have left the automaker above the allotted EU fleet average of 95 grams per kilometer.

“We are not happy that we will not be compliant in 2020, but a lot of that has been taken out of our hands,” JLR CFO Adrian Mardell said during Tuesday’s quarterly earnings call with investors.

Despite COVID-19 being a popular (and possibly accurate) scapegoat for automakers facing trouble in 2020, Jaguar Land Rover doesn’t seem to be on track to hit next year’s targets either. While Mardell said the company would be EU complaint in 2021, JLR has previously expressed concerns that it might not be able to meet similarly high targets set by the United Kingdom. According to Automotive News, analysts at PA Consulting are predicting the manufacturer will miss its target of 130.6 g/km next year, finishing 2021 closer to 135 g/km, resulting in a 93 million-euro fine.

Those numbers could be improved if it manages to launch new product with the promised efficiency metrics. However, JLR also hopes to do what it can to make them a reality in Q4.

“I believe this will be a compliance quarter and we will be in credit. We are hopeful that 90 million is the worse it gets,” Mardell said. “It depends on the release of those vehicles.”

From AN:

The rollout of the plug-in hybrid Range Rover Evoque and Discovery Sport was halted after the crossovers’ stated CO2 emissions figures rose above the original amount promised when they went on sale in April.

“Due to the impact of the COVID-19 pandemic, we are not yet in a position to deliver the previously communicated best-case WLTP combined figures,” Land Rover said.

Land Rover previously said the Evoque P300e’s CO2 was as low as 32 grams per km and the Discovery Sport P300e was as low as of 36 g/km.

Land Rover now says the lowest emitting model records 44 g/km and has an electric range of 43 km (27 miles), compared to 66 km previously. The automaker declined to say which model reaches those levels.

While bad news for JLR, this is hardly an anomaly within the industry. Several automakers have failed to hit government targets and are preparing to shell out payments or partnering with other firms to “pool” their fleet averages on passenger vehicles — including Fiat Chrysler Automobiles and Tesla, Toyota and Mazda, and SAIC and Volkswagen.

[Image: jax10289/Shutterstock]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

More by Matt Posky

Join the conversation
2 of 8 comments
  • Imagefont Imagefont on Oct 29, 2020

    I’m sure the government will put the proceeds to good use. Probably spend it towards a mass transit light rail project that will take decades to complete, exemplify government waste, experience drastic cost overruns, be delayed years, be plagued with outrageous corruption and transport a fraction of the number of people predicted in the flawed study that brought it to life in the first place. And they’ll need even more money, resulting in an individual CO2 tax for every man, woman, child and pet, just for the privilege of breathing.

  • Tstag Tstag on Oct 30, 2020

    I suspect Jaguar will go fully electric within the next few years. First the XJ, then the new J pace, then the next XF and XE followed by the F pace and F type. XE will just get dropped. This would solve the issue for JLR and maybe enable them to sell their credits. Jaguar needs to do something different and this would help it to justify the investment

  • NotMyCircusNotMyMonkeys dudes off the rails on drugs and full of hate and retribution. so is musky.
  • Big Al from Oz Musk and Trump are of the same ilk, except Musk's IQ is a damn site higher than Trumps. Musk like Trump is only into himself. Musk doesn't care about Trump only Musk. Musk sees more dollars if Trump wins.Hey, I'm Big Al again!3
  • Rover Sig We have a car with two fake exhausts in the bumper, but a large shiny muffler visible hanging down on one side, not aligned with the fake exhaust exits. Horrendous. I had to paint the shiny muffler with high-temp black paint to make it less visible. Exhaust pipes were meant to be round and hang below the bumper, and they can be made quiet or loud as the engineers like. But fake exhausts rank down there with fake intake vents on the side of that old Buick.
  • EBFlex Of course it does. What a silly question
  • Buickman Elon is a phony.