European automakers including Volkswagen and Jaguar Land Rover had to pay $552 million in fines for missing CO2 emission targets in 2020, the first year new regulations were put in place, according to a new report.
While CO2 emissions pooling among companies and making more BEVs have radically slashed those fines in recent years, the next big push will be next year, as targets tighten again.
In 2020, the first year new regulations were put in place, European automakers paid about €510 million ($552 million) in fines for missing their CO2 targets, according to Automotive News Europe.
Volkswagen and Jaguar Land Rover were among the hefty fine payers, with VW saying that it had paid more than €100 million ($106 million) in fines for missing its 2020 target by 0.75 grams per km. In October 2021, Jaguar Land Rover said that it had paid a fine of about £35 million, or about $43.5 million, after missing its target by about 3 grams/km.
Added to the list are Suzuki, Subaru, Bentley, DR Motor, Lamborghini and McLaren, although exact fines paid by each automaker were not determinable.
From Automotive News Europe:
Suzuki missed its target by 10.4 g/km, according to EU figures, translating to a fine of nearly €1,000 per vehicle. With 160,570 registrations counting toward the target, fines would be about €160 million euros.
Subaru missed its target by 34 grams, or a fine of €3,230 per vehicle. With 16,176 registrations, fines would be about €52 million.
The CO2 target for 2020 was 95 grams per km on the old NEDC test cycle, or about 120 g/km on the new WLTP cycle. It’s a highly complex system too with scores of entities with individual targets, including regional subsidiaries or van and truck divisions, etc. Each automaker, too, has a target based on mass, meaning heavier cars and SUVs are allowed to register higher emissions.
Failure to comply with the rules comes at a cost, a €95 ($102) fine for every vehicle registered in the EU, multiplied annually by each CO2 g/km above the target. That money goes into an EU general fund, the report added.
To avoid paying fines, automakers have used a strategy of joining together with other brands in emission pools, with some partnering with companies prioritizing or only selling EVs, such as JLR and Honda joining with Tesla, or VW joining with SAIC. That strategy, in addition to making and selling more BEVs in recent years, has helped automakers avoid fines. In 2021, companies paid €10 million, according to the report, so a substantial drop.
Looking at 2022, the latest results available, which were released by the European Commission in March, the only manufacturer of the 91 registered automakers to miss its target was Bugatti. Since the company only sold 30 cars in Europe that year, they let Bugatti off the hook.
In 2025, the EU will require a 25% reduction of fleet emissions from new passenger cars sold in Europe, or an overall figure of 93.6 g/km on the WLTP cycle, compared to 2021 figures. From 2030-34, the figure will be 49.5 g/km, a 55% decrease from 2021. In 2035, only zero-emission vehicles can be sold in the EU – that is, if automakers aren’t successful in their push to change that.
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Tesla (TSLA) has introduced a new direct discount for the Model Y in China as the latest of a series of incentives to boost demand during this critical end-of-quarter push.
The automaker regularly offers discounts at the end of every quarter, but the incentives to boost demand have been the most wide-ranging ever this quarter.
Over the last month, we have been documenting the many sale incentives and discounts that Tesla has put in place to ensure it creates the demand for a record quarter.
Tesla aims to deliver a record number of more than 515,000 vehicles in Q4 in order for its sales not to be down for the whole year. That’s ~30,000 more vehicles than Tesla’s last record quarter, which was Q4 2023.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates. That has been the main incentive in China, Tesla’s biggest market, until now.
Tesla’s New Discount in China
Today, Tesla announced that it is offering a ¥10,000, the equivalent of $1,380 USD, discount on the final payment for new Model Y vehicles:
The new discount can be combined with Tesla’s subsidized 0% interest financing, which has been Tesla’s main incentive in China all year.
Electrek’s Take
Based on insurance data, Tesla is tracking ahead of last year’s deliveries in China, but it is going to need to beat its last record by a significant margin to make sure not to be down for the whole year.
Model Y is Tesla’s most popular vehicle, but Tesla is also going against the expectation of the design refresh coming early next year, which can negatively affect demand.
This discount is likely to combat that and maintain Tesla’s current good momentum in China.
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We now have more details on the massive recall, which just keeps growing. Hyundai and now Kia are recalling more than 208,000 electric vehicles in Canada and the US to fix a problem with the loss of driving power, which can increase the risk of a crash.
For the second time this year, the automakers are recalling huge swathes of EVs and other “electrified” vehicles in North America, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.
In the US, Hyundai is recalling 145,235 EVs, including the 2022 through 2024 Ioniq 5, the 2023 through 2025 Ioniq 6, GV60 and GV70, and the 2023 and 2024 G80. In Canada, Hyundai is recalling 34,529 vehicles that were produced between March and November of this year, according to Automotive News Canada.
As for Kia, the recall includes close to 63,000 Kia EV 6 vehicles from 2022 through 2024 in the US, but the company has yet to offer details on its Canada recall.
It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.
Back in March, Hyundai, Kia, and Genesis issued a similar recall for 147,110 electric vehicles – that recall centered, again, around damaged integrated charging control units failing to charge the battery.
The South Korea automaker has said that all owners of affected vehicles will be notified by letter mail on the next steps to take. This will involve bringing your vehicle to one of the company’s dealers to inspect and replace the charging unit and its fuse if necessary, along with performing a software update for the charging units.
Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US or Canada, Hyundai reported.
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A group of Tesla vehicles spotted under covers at the automaker’s test track at the Fremont factory is raising some questions.
Tesla has a very small test track on the ground of its first factory, Tesla Fremont, in California.
Now and again, people fly drones over the factory and catch glimpses of new cars being tested. Youtuber ‘Met God in Wilderness’ is one of those drone pilots who regularly fly over the factory and while he didn’t catch vehicle being tested, he did catch some curious vehicles under covers next to the track:
The vehicles are all covered, and therefore, it’s hard to tell exactly what they are, but the different shapes are intriguing and raise some questions.
It looks like three, maybe four, different kinds of vehicles:
We know that Tesla is working on three new specific vehicles: a Model Y design refresh, and two new cheaper models based on Model 3 and Model Y.
All three vehicles are expected to be unveiled early next year.
Electrek’s Take
At the risk of stating the obvious, getting much information from vehicles hidden under cover can be hard. It’s even possible that some of those have shape camouflage, which is sometimes used by automakers – although I don’t remember Tesla ever using that.
So here are my best guesses. Take them for what they are: guesses.
The most interesting ones to me are the first two on the left in the picture above. The last vehicle on the left looks like it could be a smaller Model 3.: