Volkswagen hopes to avoid hefty EU emissions fines January 23, 2025

The lauch of new eletric models, such as the ID Buzz, failed to help VW overcome the drop in sales of electric vehicles in Europe in 2024. Ronny HARTMANN/AFP/File

By AFP - Agence France Presse

Volkswagen hopes to avoid hefty EU emissions fines

Frankfurt, Germany, January 23 (AFP) January 23, 2025

Volkswagen wants to boost sales of electric cars to avoid fines of 1.5 billion euros ($1.56 billion) under the European Union's tougher carbon emissions targets, a source at the German car giant said Tuesday.

“1.5 billion is the risk... That's the fine we'd be facing, the theoretical amount if we did nothing,” the source told AFP.

“We have new [electric] models on the way. That's not the figure we're expecting for the year,” the source added.

Starting this year, the European Union is reducing the average emissions that new vehicles sold in the bloc can produce, with carmakers facing hefty fines if they fail to meet the requirements.

Several EU countries, including France and Italy, have asked Brussels to drop the penalties for ailing European carmakers, which have been plunged into crisis by a hesitant switch to electric vehicles and increased competition.

Xavier Chardon, who heads Volkswagen in France, told AFP that the group was counting on the French and German markets above all to boost sales of electric cars.

In a separate statement, the ten-brand group, which in addition to its namesake also owns Audi, Skoda, and Seat, said that previously introduced and future all-electric models would help the company meet the EU target.

One way to avoid fines would be to buy unused carbon credits from other carmakers. However, Volkswagen said it hopes to avoid fines “primarily through its efforts, based on positive product momentum,” according to the statement.

“There is no doubt that the targets for 2025 represent a particularly significant challenge since sales of electric vehicles across the sector have not met expectations,” it added.

In Germany alone - Europe's largest automotive market - electric car registrations fell by 27.4% in 2024, hit in particular by the removal of government subsidies.

They now represent 13.5% of all vehicle registrations, compared to 18.4% in 2023.

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