This year, stricter European Union rules came into force, forcing car manufacturers to reduce average emissions. Car manufacturers must meet the limit of 95 grams of CO2 per kilometer or will face fines.
–
As a result, automotive companies are introducing new electric cars and plug-in hybrids. However, some are still at risk of failing to meet European requirements. That’s why, according to Bloomberg, they connect with competitors who are better off.
–
For example, Ford had to withdraw 20,500 Kuga plug-in hybrids from sale because seven of these cars started burning while charging. But because of that, the carmaker would not meet the limits and would have to pay. In the end, the American manufacturer was saved by the Swedish Volvo, with which he created a joint fleet.
–
Volvo, which is part of the Chinese multinational car company Zhejiang Geely Holding Group, and its Swedish subsidiary Polestar have “undershot” the limits, so it could sell the rest of the “emission notes” to the Americans. The carmakers did not disclose the amount, Volvo only stated that it is investing the amount in green technologies.
–
However, Ford already cost European emission ceilings and the need to associate with competitors to meet them with $ 400 million. The Kuga SUV fires and their subsequent withdrawal from the sale, the Americans explained a quarterly loss of $ 440 million.
–
“If there was no problem with the Kuga, we would have a third-quarter profit in Europe,” said John Lawler, Ford’s chief financial officer. He added that the company expects to spend another $ 200 million on the costs associated with their withdrawal in the quarter.
–
The same reasons why Ford teamed up with Volvo led Japan to look for an emissions partner. It joined the Italian-American carmaker Fiat Chrysler, which agreed on emission permits in 2019 with Tesla Elona Muska. The entry of the Japanese carmaker will not change anything in this pact.
–
It is not clear how much money Honda paid for this. A Honda spokesman said the association with Tesla and Fiat Chrysler was another measure that needed to be complied with. In addition, the carmaker will introduce electric and hybrid versions of the CRV and Jazz models.
—
