Jaguar Land Rover will remain in Tesla’s manufacturer pool for CO2 emissions. A decision that should allow the company to avoid paying fines for not having achieved its objectives.
Faced with European regulations, car manufacturers are required to meet increasingly strict CO2 emission targets for their car fleets. Any company that does not achieve its objectives is liable to a heavy fine of 95 euros per vehicle and per additional g/km.
However, the European Union authorizes car manufacturers to group together in pools. It then considers them as a single entity to determine average CO2 emissions.
This possibility has given rise to a number of agreements. For example, companies that are about to miss their fleet targets pay low-emitting manufacturers to get into their average.
Last year, Jaguar Land Rover joined Honda in a pool formed by Tesla. The JLR group will remain in the same pool this year. The European Commission has confirmed this.
Honda chooses the same option as JLR
With Tesla’s fleet being all-electric and therefore emissions-free, the move will help JLR avoid potential fines for not meeting its targets.
In addition, we also had confirmation that Honda would remain in this pool. Like Jaguar with its only electric I-Pace, the Japanese manufacturer only has the Honda e to defend itself in the ‘zero emissions’ market.
This practice is now common in the automotive market. Thus, Fiat Chrysler was part of it before the formation of Stellantis. Ford and Volvo also have an agreement, as do Volkswagen and MG. However, eventually, this rule will disappear.
Volkswagen narrowly misses its CO2 targets