Honda Pooling With Tesla for EU Emissions Compliance

Honda Motor Co. will be accompanying Fiat Chrysler Automobiles in pooling its emissions with electric vehicle manufacturer Tesla in an attempt to adhere to CO2 limits mandated by the European Union. For 2020, the average emissions of all vehicles sold within the region must not exceed 95 grams of CO2 per kilometer. Companies failing to comply will be forced to pay the government sizable fines as it readies even higher targets for next year.

Over half of automakers planning to move product inside Europe next year are already assumed to fail however, resulting in a series of rushed hybrid/EV products, the obliteration of the diesel-powered passenger vehicles, and companies desperate to team up with the manufacturers that came in under the regulatory limits.

The term “pooling” has become popular within the media but automotive firms are effectively buying their way into environmental absolution. For example, FCA has been abundantly clear that it plans on just paying its way out of whatever environmental penalties it’s subjected to until it manages to adjust its lineup to include emissions-friendly models it feels will be truly competitive and in line with its philosophy (though it has manufactured obvious compliance models). As a result, CEO Mike Manley has said the company has already finalized an agreement to pay Tesla through next year. According to Bloomberg, Volvo Cars is also supposed to be emissions-compliant in the EU — allowing it to rope Ford Motor Co. into its final figures for an undisclosed sum. But it doesn’t have the same ability to court multiple partners like Tesla does.

From Bloomberg:

Underwhelming sales of Honda e electric cars probably contributed to the carmaker needing help to achieve compliance in Europe, Matthias Schmidt, an independent auto analyst in Berlin, wrote in a blog post. Tesla is likely to mount a big fourth-quarter sales push helped in part by exports to Europe from its plant in China, he said, allowing the company to assist both Fiat Chrysler and Honda.

A Honda spokesperson said that pooling with Tesla and Fiat Chrysler is an additional measure to comply beyond launching the e and hybrid versions of its CR-V and Jazz (Fit) models.

There’s a lot of money being thrown around with EV manufacturers like Tesla poised to make millions via carbon sales every single year until legacy manufacturers can keep pace. But the Society of Motor Manufacturers and Traders (SMMT) has been sounding the alarm that the regulatory measures established in the EU haven’t actually been tamping down real-world emission figures. Like the United States, which has seen practical fuel economies stagnate for years as more customers opt into buying SUVs and crossovers, the European Union’s fleet CO2 averages have witnessed a similar trajectory. In 2018, EU CO2 averages went from 118 g/km to 120.5 g/km and continued to rise to 122.4 g/km in 2019.

Over the summer, the European Commission warned the industry to significantly reduce emissions or ready itself for larger fines in 2021 — something which now seems unavoidable. It’s hardly what anyone wants to hear while pandemic lockdowns, instituted by the same people mandating emission limits, ravaged automotive sales this year.

[Image: Anastasiia Moiseieva/Shutterstock]