Stellantis, Toyota, Ford, Mazda, and Subaru plan to pool carbon emissions with US EV manufacturer Tesla in an effort to meet stringent European carbon reduction targets, according to official EU documentation.
Others, including Volvo, Polestar, and Smart, are set to pool emissions with Mercedes-Benz, the same documents reveal.
Missing the targets by even one percentage point could incur fines of €300 million ($312 million) under the EU’s 2025 Corporate Average Fuel Economy (CAFE) standards.
Stellantis, Toyota, Ford, Mazda, and Subaru plan to pool carbon emissions with US EV manufacturer Tesla in an effort to meet stringent European carbon reduction targets, according to official EU documentation.
Others, including Volvo, Polestar, and Smart, are set to pool emissions with Mercedes-Benz, the same documents reveal.
Missing the targets by even one percentage point could incur fines of €300 million ($312 million) under the EU’s 2025 Corporate Average Fuel Economy (CAFE) standards.
As a result pooling arrangements have now become a high-priority, with industry expert Matthias Schmidt noting that “securing pools has moved from a non-descript back office to the CEO making the calls between various partners.”
According to Reuters, Stellantis has confirmed the group’s participation, citing the need to meet 2025 targets efficiently while continuing to focus on developing electric and low-emission technologies. The group has previously said it must increase EV sales in Europe from the current 12% to 21% by 2025.
Schmidt observed that Stellantis, a former Tesla pooling partner, has returned despite previous claims it could meet targets independently while Ford has openly struggled to ramp up BEV production
He added that Volkswagen is likely to form pools with Chinese partners while BMW, however, insists it will meet targets without forming pools.
Manufacturers wishing to join the open pool must submit their full application by no later than February 5, and must sign a non-disclosure agreement and provide the pool manager with details about their CO2 emissions to allow assessing whether there is a risk for the pool not to meet its targets and their ability to cover any potential excess emissions premium.
For Tesla, any revenues from pooling agreements may provide a cushion amid macroeconomic pressures. Tesla delivered 512,250 vehicles in Q4, slightly missing its 1.8 million annual target, raising concerns about its ability to navigate tightening market conditions and global uncertainty.
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