Volkswagen and Ford will struggle to meet new EU emission targets

Major players like Volkswagen Group and Ford are facing significant challenges to meet new European Union (EU) regulations that require car makers to significantly reduce the average emissions of their fleets, according to a new report by Dataforce.

With the European Union poised to drastically tighten CO2 emission targets for car manufacturers in 2025, the largest Original Equipment Manufacturers (OEMs) could face steep financial penalties that could total hundreds of millions of euros.

Beginning in 2025, car manufacturers in the EU will be required to reduce average CO2 emissions for passenger cars from 116 g/km in 2024 to below 93.6 g/km - a reduction of 19%.

Light commercial vehicles will face a similar cut, with targets decreasing from 185 to 154 g/km. Failure to meet these targets will result in fines calculated at 95 euros for every gramme of CO2 above the limit, multiplied by the number of vehicles sold, leading to potential penalties in the hundreds of millions.