(FILES) The logo of German carmaker Volkswagen (VW) is pictured on the main plant of the group in Wolfsburg, northern Germany, on March 22, 2022. – German automotive giant Volkswagen said on September 2, 2024 it could close production sites in Germany, as the auto industry struggled to manage rising costs. (Photo by Yann Schreiber / AFP)
Frankfurt, Germany — Volkswagen wants to boost sales of electric cars to avoid 1.5 billion euros ($1.56 billion) in fines under stricter EU carbon emissions targets, a source at the German car giant said Tuesday.
“1.5 billion is the risk… That’s the fine we would be facing, the theoretical amount if we would do nothing at all,” the source told AFP.
Article continues after this advertisement“We have new [electric] models coming. That’s not the value we expect for the year,” the source added.
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From this year, the European Union is lowering the average emissions that new vehicles sold in the bloc are permitted to produce, with carmakers facing hefty fines if they fail to comply.
Article continues after this advertisementSeveral EU countries including France and Italy had urged Brussels to ditch the penalties for embattled European carmakers, who have been plunged into crisis by a stuttering switch to electric vehicles and increasing competition.
In a news release over the weekend, PISI said it purchased random rebars from hardware stores in Davao del Sur, Davao del Norte, Maguindanao, Lanao del Sur, Lanao del Norte, Zamboanga del Norte, Samal Island, Cotabato City, Pagadian City, and Iligan City on Sept. 9 to 13.
Article continues after this advertisementXavier Chardon, who heads Volkswagen in France, told AFP that the group was counting on the French and German markets above all to boost sales of electric cars.
Article continues after this advertisementIn a separate statement, the 10-brand group, which apart from its namesake also owns Audi, Skoda and Seat, said that previously introduced and upcoming all-electric models would help the firm achieve the EU target.
One way of avoiding fines would be the purchase of other carmakers’ unused carbon credits. However Volkswagen said it hopes to avoid fines “primarily through its own efforts, based on the positive product momentum”, according to the statement.
Article continues after this advertisement“There is no doubt that the 2025 targets represent a particularly significant challenge, as sales of electric vehicles across the industry have not been meeting expectations,” it added.
In Germany alone — Europe’s biggest auto market — electric car registrations fell 27.4 percent in 2024, hit in particular by the removal of government subsidies.
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