Europe’s Carmakers Face Existential CO2 Threat

Aug 6, 2019

Forget Brexit, China, tariff wars, weakening markets and the cost of new technology; European automakers face a more imminent and massive challenge in 2020 from harsh new European Union (EU) fuel economy rules which threaten to wipe out profits, and then some.

The EU demands that by 2021, each carmaker must produce a fleet of cars and SUVs with an average CO2 fuel economy of the equivalent of 57.4 miles per U.S. gallon. This increases by a step through 2025 to 92 miles per U.S. gallon average by 2030.

As the rules begin to bite, the European car buying public will finally get to see what is being done in their name by distant politicians and bureaucrats in Brussels. For instance, VW has said by 2030 it will be too expensive to make small cars like the Up and Polo. First-time buyers may be forced into buying limited range and cheap little electric runabouts like Sweden’s Uniti or the Citroen Ami One. They will be told this is being done to save the planet.

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