Volkswagen faces a major challenge: to cut CO2 emissions by around 15% from next year, a mission made even more difficult by declining demand for electric cars in Europe. This situation is exacerbated by the adoption of stricter measurement standards from 2025, making it even more difficult to meet the targets.

Volkswagen: ambitious goals and growing challenges

Volkswagen has a difficult task to cut emissions by around 15% next year. This reduction is becoming even more difficult to achieve due to the drop in demand for electric vehicles in Europe. As the pressure on automakers to accelerate the adoption of electric vehicles continues to grow, attracting new buyers becomes a serious problem due to reduced subsidies and relatively high car prices. From 2025, car manufacturers will be subject to stricter CO2 emission measurement standards adapted to real driving conditions. This regulatory development will make it even more difficult to achieve the set goals. To meet these challenges, This year, Volkswagen plans to release an expanded line of all-electric models. However, the transition to these electric vehicles is hindered by consumer reluctance and economic stagnation, which makes the task even more difficult for manufacturers.

Despite these challenges, Volkswagen and other automakers continue to invest heavily in electric vehicle development to meet regulatory and market demands.

Consequences of not following the rules

Failure to comply with the new rules will result in significant fines for car manufacturers, underscoring the urgency for these companies to find viable solutions to comply with CO2 regulations Car manufacturers face a new requirement to reduce average CO2 emissions from their new fleets to 93.6 g/km by 2025., according to the WLTP cycle, compared to the 95 g/km standard set for 2021 according to the NEDC cycle. To fulfill this obligation, By 2025, VW will have to cut emissions by around 15%., according to JATO’s analysis. Failure to comply with these new rules will result in a fine of €95 per vehicle registered in the EU, multiplied by every gram of CO2/km above the target! Next year, VW and other automakers may consider pooling their fleets with electric-focused manufacturers like Tesla to help them meet their goals, although that also involves significant costs.

Note that due to the fleet merger, Since 2009, Tesla has amassed nearly $9 billion through deals with automakers seeking help in meeting emissions standards