According to the latest estimates made by automakers, ed meeting the proposed European Union CO2 regulations would incur research, development and production costs of 13 billion euros.
The figures comes from an analyst report, with the carmakers also claiming the costs are rapidly rising as they strive to achieve and prepare for the tough EU regulations on CO2 limits that take effect in 2021. They also add that more expensive solutions – one that also yield losses instead of profits for longer – such as full-electric powertrains operated by batteries or fuel cells – are now increasingly needed. The green side of the play actually disagrees with the research by equity analysts at Evercore ISI, which pits automakers spending 13 billion euros to achieve the targets after last year it forecasted they would only spend 12 billion euros. Additionally, European automakers are expected to carry the largest part of the expense, at around 8.5 billion euros. The report says the costs are rising after most of the rapid gains, such as start/stop systems and switching to lower displacement engines, have already been mostly implemented. Now, more expensive measures will be needed to achieve the EU’s mandatory goal of dropping fleet wide CO2 emissions to 95 grams per kilometer by 2021, down from 127g/km in 2013.
On the other hand, similar research made by environmental groups Transport & Environment, Greenpeace and ICCT shows the target is not actually coercing the automakers to develop electric and hybrid powertrains. The green officials also add the automakers so far had a very easy task in reaching the proposed regulations because of lax regulation on fuel testing standards that has opened the door to numerous loopholes in the system.
Via Automotive News Europe