Posted 04/04/2019 13:53:17CET
Volkswagen, the most exposed, with a possible impact of up to 3,869 million euros, according to Moody’s
LONDON, 4 Apr (EUROPA PRESS) –
Automakers face fines of between 2,403 and 11,198 million euros if they do not meet the new requirements on carbon dioxide (CO2) emissions that will take effect in 2021 in Europe, according to a report prepared by the Moody’s rating agency.
The text shows that the automotive companies are working in the development and production of electric vehicles with the aim of meeting the demands in terms of emissions in the United States, China and Europe.
“Potentially heavy fines are acting as a great incentive for the launch of an unprecedented number of new electric or hybrid vehicles during the next year,” explains Moody’s vice president and analyst James Leaton.
It also indicates that many manufacturers may not achieve these emission targets, which could cause them to have to pay penalties or be forced to reduce their market share. “Volkswagen, Fiat Chrysler, Ford, Hyundai and Kia are the most exposed on the basis of their current difference with the objectives for 2020/2021,” he says.
Thus, car brands that do not comply with emissions regulations will have to pay in Europe a fine of 95 euros for each additional gram issued by each of their vehicles marketed in the ‘Old Continent’.
TOYOTA, THE BEST POSITIONED
The report shows that, in the worst possible scenario, the Japanese Toyota is the only firm in the sector that will comply with environmental objectives in Europe, so it will not have to face any type of fine.
Thus, the European fleet of the company chaired by Akio Toyoda had average CO2 emissions of 103 per kilometer in 2017 and the forecast is that this figure will be 88.5 grams per kilometer in 2021, compared to the goal of 94 grams .
Among the car companies that will experience a minor impact on fines for this situation in the most hostile scenario include Volvo Cars, with 57 million euros in penalties, and Jaguar Land Rover, with 141 million euros in penalties.
On the opposite side, Volkswagen is positioned as the company in the sector most exposed to fines, since, in case of a slow adaptation to the regulations, the German company could face penalties of 3,869 million euros, taking into account it counts its European sales in 2017 and a deviation of 11.5 grams per kilometer of CO2 over the target of 95 grams by 2021.
On the other hand, Fiat Chrysler Automobiles would also face, in this scenario, the payment of 1,344 million euros in 2021, registering a deviation of 14.5 grams on the target, a figure that in the case of Hyundai stands at 1,222. million euros, with a deviation of 13.5 grams.
Also above the 1,000 million euros fine estimated in the case of a slow adaptation to environmental regulation in 2021 are Daimler, with 1,141 million euros, and Ford, with 1,120 million euros.
The Moody’s report takes into account, in turn, two other scenarios of adaptation to the regulation on faster emissions by vehicle manufacturers, which contemplate total fines of 2,403 million euros in the case of a rapid adaptation and 5,877 million euros if a moderate transition is made.