EU Emission Fines Could Spell Trouble for Automakers in 2021, Especially VW and FCA

A recent study from consulting firm AlixPartners has suggested that automakers could be in for a financial ass kicking of epic proportions. As it turns out, reaching emission quotas is a difficult business and the European Union wants 95 grams of carbon dioxide per kilometer by 2021. The study suggests few automakers are on track to reach that goal and, as a result, will be forced to pay out sizable fines. We’re talking billions.

Can you guess which manufacturers are supposed to get hit the hardest?

Here’s a hint: we’ve discussed one of them having similar issues in the United States earlier this year and both of their names are in the title of this article.

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FCA Paid $77 Million in Civil Penalties to Sell Cars People Actually Want to Buy

Fiat Chrysler Automobiles paid $77 million in U.S. civil penalties late last year due to its failure to adhere to 2016 model year fuel economy requirements. In December, the National Highway Traffic Safety Administration (NHTSA) issued a report claiming the industry faced millions in fines from 2016 and that one manufacturer was expected to pay significant civil penalties.

You can probably guess which one. But FCA is by no means the only automaker affected by stringent fuel rulings.

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  • GregLocock "The automaker did announce a $406 million investment in Michigan (the state where it has seen a large number of layoffs recently) on the same day as its rebuttal to the NDC. However, that may have been something it was already working on before the dealer letter went out."Well golly gosh, that's insightful, no wonder we come to TTAC to be informed. Car companies routinely spend half a billion dollars on a whim. Not.
  • Mister Corey, this series (and the Lincoln series that preceded it) are so very good that I'd like to suggest you find a publisher and rework both series of posts into coffee table books.
  • Jerry I will never own a fully electric automobile!
  • Lou_BC They call Lada's Jeeps?
  • Lou_BC I can see why Frontier sales are sluggish. Both Ford and Chevy/GMC have new small trucks on the market. Toyota has a redesigned Tacoma out as well. The Maverick and Santa Cruz also compete in this space.