Climate Changed

Automakers Risk $16 Billion in Fines on EU Emission Breaches

  • EU to bring in more stringent CO2 standards, fines from 2020
  • Exane sees French carmakers PSA, Renault’s profit most exposed

Photographer: Marlene Awaad/Bloomberg

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Automakers failing to cut greenhouse gas emissions risk writing a big check to the European Union.

Manufacturers ranging from Renault SA to Mercedes-Benz maker Daimler AG are on the hook for total fines in excess of 14 billion euros ($16 billion), should they fail to comply with tighter emission regulation phased in from 2020 and in full force the next year, an analysis by IHS Markit shows.