Volkswagen suffered a fresh blow yesterday when it was claimed that the German carmarker could be fined €1 billion for falling short of new pollution targets.
Researchers warned that VW was likely to face higher penalties than any other manufacturer under stringent European rules drawn up to cut carbon dioxide emissions by the end of the decade.
A study found that seven out of a dozen top carmarkers are likely to exceed new CO2 targets. Four manufacturers — Jaguar Land Rover, BMW, Volkswagen and Hyundai-Kai — are on course for significant breaches of the new standards, it was claimed.
Companies risk penalties for every gram of CO2 released beyond the new limit, multiplied by the number of cars sold by the end of the decade. An analysis by PA Consulting estimated that VW could be on course for a penalty of up to €1 billion, while Hyundai-Kai faced a €300 million bill and BMW one of about €100 million.
The disclosure will pile further pressure on VW after it admitted fitting cheating software to diesel engines in an attempt to manipulate nitrogen oxide emissions tests. The company has been forced to recall millions of vehicles, with almost £5 billion being set aside to deal with the controversy.
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Faced by the new European Union targets, PA Consulting said that Peugeot Citroën, Fiat, Renault-Nissan, Toyota and Volvo were on course to meet the requirement, while Ford, General Motors and Daimler could marginally exceed it.
“The challenge for carmakers will be to focus on improving the efficiency of internal combustion engines and on increasing the number of alternative vehicles in their fleets,” it said. “This will be very challenging, especially for the German carmakers, who have, to date, struggled to develop alternative vehicles that their customers want to buy.”