Reduce your CO2 emissions again and again

According to recent reports from Handelsblatt, Volkswagen currently meets current EU standards with average carbon dioxide (CO₂) emissions of 118.4 grams per kilometer, which is below the limit of 122 grams. But from 2025, a new era will come, when the limit will be lowered to 105 grams per kilometer, a titanic challenge if the current trajectory continues. Volkswagen’s goal is clear: to increase sales of electric vehicles in order to reduce the average emissions of its fleet. however, dark clouds are looming on the horizon. Financial incentives for electric cars, which were once a catalyst for the market, have been cut sharply, especially in Germany, which has seriously affected demand. Volkswagen’s CEO recently spoke of a “volatile situation” while stressing the need to increase sales of electric vehicles. But balancing achieving that goal with a company’s desire to maximize profits while reducing costs is a risky balancing act, especially in an environment of increasingly ruthless competition.

What solutions?

Volkswagen’s potential weapon could be to strategically cut prices to stimulate demand for ID models. However, this maneuver is not without risk, as consumers risk waiting for additional discounts or new subsidies. This is a difficult dilemma, which puts Volkswagen in the delicate position of vacillating between its environmental goals and financial demands. The automotive world has found itself at a crucial crossroads, where manufacturers are juggling environmental requirements and economic realities. Stricter emissions standards are undoubtedly necessary to meet the challenges of climate change, but the path to compliance for Volkswagen appears to be full of pitfalls. The next year will be decisive for the German manufacturer, and the entire automotive industry is moving through the turbulent waters of the transition to cleaner mobility. In short, Volkswagen seems to be faced with a dilemma where it must choose the lesser of two evils. On the one hand, the company can increase the production of electric cars, even if this leads to financial losses.

On the other hand, it could continue to maximize the profits currently generated by internal combustion engines, but this choice risks exposing it to significant fines from the European Union. An important problem is looming on the horizon, as from 2025 manufacturers will have to pay these fines.

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