Jaguar Land Rover and Volkswagen WILL be hit with EU Emissions fines

Jaguar Land Rover and Volkswagen are preparing to be hit by EU fines as the slow introduction of electrification prevents them hitting CO2 targets.

The end of 2020 is looming, and with it a price to be paid by some car makes for failing to hit EU average emission targets although some, like Volvo, have beaten their CO2 targets and are pooling to help Ford hit theirs.

Perhaps surprisingly, among those preparing to be hit by emissions fines, is Volkswagen which, despite the arrival of the electric ID.3, has had to make provisions for fines.

VW does have a pooling arrangement with MG UK to offset its emissions, but the low volume of MG EV sales helped by only about 0.3g in the first half, and the problems getting the ID.3 out means VW are expecting a fine in the region of ‘a couple of hundred million’ unless ID.3 deliveries, and deliveries of other low emission cars, rise in the last months of the year.

Jaguar Land Rover are also in the same position as VW, with a slow rollout of electrified cars caused, to some degree, by the Covid outbreak and the stop on sales of the Range Rover Evoque and Discovery Sport plug-in hybrids after there were discrepancies in emissions figures.

JLR has set aside some £90 million for fines up to the end of Q3, but expect to hit targets in Q4.