Automakers are confident of beating their CO2 emission targets in 2025, consider pooling as an option
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CEO Oliver Blume said they are optimistic that they will achieve their target and that pooling is an option.
“We still have a gap to close, first of all, on the other side, it’s very promising. The order intake we do have on BEVs, which doubled in the first half of this year comparing to last year. And we are launching this year over 30 new models and the half of them are our BEVs and they are entering in the market right now. And the first products are getting very positive feedback,” he said during their Q2 earnings call.
" And so first of all we have big potential with all our groups and the new models we are bringing to the market. We want to help ourselves and only secondly, we will balance other measures like pooling emissions but always leveraging expenditures on the one hand side and benefits on the other side," he pointed out.
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Mercedes-Benz CEO Ola Kallenius also said in Q2 earnings call that pooling is an option.
“For 2025, we need to take a step up in Europe. We will take a step up in Europe. Should it not be enough, then you would have to look at pooling solutions, but that’s too early to tell.”
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Renault CEO (who is also the president for ACEA) believes Renault could beat the target but is calling for more coordinated support from EU regulators.
“The EV market is currently stuck at 15%, and to meet the 2025 targets, we need to be above 20%. Renault is well-positioned with a high mix of hybrids and new EV products. However, the industry as a whole may struggle to meet these targets without more flexibility or coordinated support from regulators,” he said. “Flexibility in regulations, similar to what was done in 2020, could help the industry meet these ambitious targets without incurring significant fines,” he said during recent earnings call.
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BMW CEO Oliver Zipse is confident that they will hit their target, pointing out that they are already on the right track.
“Looking at 2024, which is more or less based on the result of 2023, where we were below the official CO2 target in Europe by more than 20%. So the year 2024, we will lower our CO2 emission but will be far below the official targets. And that we achieved by an additional mix of electric cars,” he said.
“2025, the average fleet emissions will go down by 15%. So it will be tougher for everybody to achieve the targets. But we’ve just been executing our preliminary plans for 2025, and that shows that we will also reach that target. So the product mix we have here in Europe will lead that we achieve these targets.”
Assessment
Considering von der Leyen’s vow not to weaken EU’s efforts to fight against climate change and the fact that most automakers are not complaining against the targets but are rather confident that they will beat them, I am maintaining my projections for a 575 million euros pooling payment for Volkswagen in 2025. It’s good to point out that if Volkswagen pools with a partner in need of pooling as well, the expense could be lower.