By on November 2, 2020

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]

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12 Comments on “Honda Pooling with Tesla for EU Emissions Compliance...”

  • avatar

    If they really want to meet these emissions targets and not just pocket a bunch of “tax” money for the ever burgeoning general fund they need to put some of the heat on the consumer. Tax the hell out of larger vehicles to help “realign” customer demand for larger vehicles – make them pay. Then take some of the money collected in fines and give a rebate to people buying hybrids – not pure EV’s – hybrids. Help to offset the additional cost of the hybrid drivetrain, which is a much smaller and more affordable anyway and anything purely battery powered. Then stop mandating unrealistic goals and take a hard look at the physics and see what’s possible.
    But none of this would be practical, even though it would be effective in meeting the states goals of lowering emissions. Otherwise it’s just the government collecting money because they never have enough.

    • 0 avatar

      They already do all these things in the EU as I understand it. Every country is a little different, but on there’s a table on page 8

      There’s a VAT, then a registration or purchase tax that is based on CO2 in most countries, then an ongoing ownership tax (i’m assuming with registration renewal) thats effected by CO2 or other related factors, plus theres a column for taxing on company cars, then there’s a significant fuel tax that will automatically scale to your CO2 output.

    • 0 avatar

      Maybe the world and the EU should Wake up to the fact that increased carbon in the atmosphere is not a crisis. The plants and Plankton will grow and suck it up. A circular system.

      The green new deal is a fraud as are EU standards.

  • avatar
    SCE to AUX

    The perceived problem is how to meet the regulations, and/or pay the fines.

    The actual problems are:
    1. Regulations which are diverging from consumer taste.
    2. A bogus carbon credit system that benefits no one.

    How things have changed in 40 years. Honda was one of the last to utilize catalytic converters and fuel injection because its CVCC engines were so clean. Now, their money is made in thirsty SUVs, just like everyone else.

    • 0 avatar

      I get why people prefer SUV’s. I bought a CRV in 2003 and still have it, it’s extremely versatile, easy to park and maneuverable in the city and easy to park. I’m curious if the new Hybrid CRV meets the emissions requirement because the additional cost of the hybrid drivetrain itself is less than $2000. Although currently Honda sells the hybrid CRV fully optioned with AWD so it’s sticker is much higher. All this focus on EV’s is misplaced, hybrids offer a lot of benefit at a much lower cost of entry.

      • 0 avatar

        It’s true that a lot more could be done now with hybrids and plug-in hybrids. Right now carmakers are four-cylindering all the things. A biggish four-cylinder inevitably means idle shake. Automatic stop-start solves the idle shake problem, but introduces delays when the light turns green. Hybridizing solves the problem: the electric motor gets you moving instantly and the gas engine can kick in whenever it gets around to it. And you get much better MPG.

        I assume the barrier is cost. But look at all the costs carmakers are taking on now: 9-speed automatics or DCTs or CVTs, turbos, GDI. That stuff isn’t free either, especially with warranty claims figured in. Perhaps we’ll reach cost parity when particulate filters are required on GDI engines…as they inevitably will be, since our lungs can’t tell the difference between GDI particulates and diesel particulates.

        But ultimately hybrids are a bridge technology. With long lead times automakers have to be looking ahead to the next innovation, not the last.

      • 0 avatar

        94 grams of WLTP CO2/km is a frugal Prius…. No SUV generating its own power, will match that.

        Te whole thing is just another racket. As usual, designed to transfer wealth: From those competent enough to build things useful like cars. To the usual coquetry of illiterate yahoos too dumb to do anything more involved than blindly “investing” what central banks stole from others for their benefit, in mindless hype by clueless hypesters.

        It won’t stop until Germany leaves the EU, reintroduces the Mark, and gets back to being ran by adults acting at least semi literate again. As long as central banks can be relied on to transfer all wealth to the dumbest of the dumb, things will only ever continue getting dumber and dumber, hence more and more self destructive.

  • avatar

    The EU is working to mandate electric cars without seeming to do so. More electric cars will be sold as the lower battery prices lower the cost of the electric cars to the same level as the gas cars. Give them a couple of years and electric cars will be a much larger portion of the cars sold in Europe. In the US too.

    • 0 avatar

      We shall certainly see. But assuming that battery prices will continue to drop is a very broad and baseless assumption not supported by facts. Hybrids make a great deal of sense NOW and they are affordable NOW. People continue to underestimate the value and importance of portable fuels. Governments cannot mandate scientific discovery and physics. Electric brodozer pickup trucks are not the answer!

    • 0 avatar

      BEVs will be a larger share, specifically because automakers will be forced to subsidize the inferior product (for most people, most uses) they represent, with earnings pilfered from the superior product which is less kneecapped cars, in order to be able to sell the latter. Effectively driving up the price of the latter, versus the former. While at the same time entrenching and subsidizing big, existing carmakers, by making it darned near impossible for startups to come in and offer better niche products.

      No different from how CAFE works over here. Nor how “you get to sell one import for every 100 Ladas you sell” rackets worked. Just another example of idiots who can’t produce anything of value, using totalitarian government to insert themselves into value chains created by their superiors.

  • avatar

    “Electric… pickup trucks are not the answer!”

    Someone should contact Mike Manley, stat:

  • avatar

    Let the games begin.

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