Three years from now, Europe’s car makers will face perhaps their toughest test for many decades when EU law requires them to meet very rigorous fuel economy laws.
However, according to two auto industry consultants, the combination of new testing legislation, the effects of Dieselgate and the market shift towards SUVs could make it near impossible for car makers to meet the laws. Failing to do so would result in manufacturers facing fines of hundreds of millions of euros.
Under the regulations, each car maker has a CO2 output target, which is averaged over its whole range of cars. So while the targeted average across the whole industry is just 95g/km of CO2, the individual requirement varies, via a complex calculation, depending on the weight and size of vehicles built and how many of them the manufacturer sells each year.
Jaguar Land Rover, for instance, has a fleet CO2 target of 132g/km because it sells fewer than 300,000 vehicles in the EU each year and makes larger-than-average vehicles. Fiat Chrysler Automobiles,by contrast, has a fleet target of 91.1g/km. In reality, the 95g/km average means an average real-world economy of around 78mpg across a car maker’s entire fleet. And that is a huge technological hurdle. If that doesn’t sound difficult enough, the EU has decided to introduce a new, and much more rigorous, way to measure fuel economy. When the original regulations were set back in 2012, the standard EU fuel economy test was the New European Driving Cycle (NEDC). This, however, has since been dropped and replaced by the Worldwide Harmonised Light Vehicle Test Procedure (WLTP).