The death of the internal combustion engine (ICE) has been a lingering threat for companies reliant on the sale of diesel and gasoline vehicles. The move to zero emissions vehicles is now an inevitability as regulations tighten and governments around the world look to outlaw the sale of new ICE cars.
Fleet average CO2 targets have already been defined in Europe: 95 grams of CO2 per kilometre, with a 15% reduction in 2025 and a 37.5% reduction in 2030. Automakers must comply with these targets or face fines. Penalties can mount rapidly: manufacturers must pay €95 (US$115) per gram of CO2/km exceeded, multiplied across each new vehicle sold in that year.
In January 2021 it was revealed that Volkswagen Cars would face a €100m fine for narrowly missing its 2020 target. For stakeholders in Europe, attentions are
