Toyota, Stellantis, Ford, and Mazda Collaborate with Tesla to Achieve EU 2025 Emission Regulations
Mercedes is collaborating with Volvo and Polestar, while other manufacturers including VW, BMW, Kia, Hyundai, JLR, and Honda have not yet revealed any similar initiatives.
- European firms could face fines of up to €15 billion ($15.5 billion) if they don’t meet the new, stricter targets.
- Stellantis, Ford, Mazda, Subaru, Leapmotor and Toyota will pool emissions with Tesla to comply with EU’s regulations.
- The sale of carbon credits accounted for roughly 3% of Tesla’s $72 billion in revenue during Q1-Q3 2024.
A group of the world’s largest car manufacturers want to pool their European Union emissions with Tesla this year to avoid costly fines. This year, overall fleet emissions in the bloc will need to fall from 106.6 grams of CO2 per kilometer traveled down to 93.6 grams, and individual car manufacturers have specific targets they must hit.
According to documents released by the EU Commission, Toyota, Ford, Mazda, Stellantis, Subaru and Leapmotor intend to create a ‘Superpool’ with Tesla. These brands account for a combined 33% of the total vehicle market and a 30% share of the total EV market in Europe.
Tesla's Carbon Credits Could Provide Assistance, Yet Might Fall Short
“Considering 2024 sales, the Tesla pool significantly narrows the emissions gap for automakers within the group, bringing them to within just 4g of the target,” Automotive Research Lead at Rho Motion, Will Roberts, said.
He pointed out, however, that “Despite the weight of the world’s largest BEV manufacturer, this does not guarantee fines are avoided by this pool. Tesla has sold fewer vehicles in 2024 than 2023, and a continuation of that trend would not be helpful. Furthermore, Toyota, Subaru and Mazda have all been slower to get BEVs on the road and with Toyota alone selling three times more vehicles than Tesla, the offset effect only goes so far.”
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