Europe's Tough Emissions Rules Come With $39 Billion Threat

Top car-makers aren’t on track to meet EU’s stiffer CO2 targets

Time is running out for carmakers in Europe. Just six months out from stiff new emissions rules, the industry is facing up to an estimated 34 billion euros ($39 billion) in penalties as well as eroding profits from selling more electric cars.

Volkswagen AG, the world’s biggest carmaker, faces the largest penalty at about 9 billion euros based on 2018 reported emissions, followed by Peugeot maker PSA Group and Fiat Chrysler Automobiles NV -- the company with the single largest gap between actual performance and the new targets. BMW AG and Daimler AG could see earnings drop sharply due to their heavy reliance on high-emission SUVs. read more »