Automakers have formed alliances to help them avoid hefty European Union (EU) fines on carbon emissions by purchasing credits from electric vehicle (EV) companies.
Several traditional car manufacturers face potential fines as the transition to EVs in Europe has proved slower than expected in recent years.
Here are details about the regulation and alliances for 2025, as of Tuesday:
FINES
EU fines – which automakers have said could reach up to 15 billion euros ($17.5 billion) – were initially envisaged on 2025 carbon emission levels.
In March, however, the European Commission yielded to pressure from automakers and allowed compliance based on their average emissions over 2025-2027.
SCOPE
All current alliance agreements, identified by the names of their ‘pool managers‘, will expire at the end of this year.
They are expected to be renewed in coming years.
NISSAN
Japan’s Nissan in October pooled with Chinese EV giant BYD.
KG MOBILITY
Another pool was formed at the end of September by South Korea’s KG Mobility and Chinese EV maker Xpeng.
TESLA
In January, Tesla formed a pool with Stellantis, Toyota, Ford, Chinese EV maker Leapmotor, Mazda, and Subaru.
Japan’s Honda and Suzuki joined the pool in March.
MERCEDES
This pool was also formed in January to include Mercedes, Volvo Car, EV maker Polestar and Smart Automobile (a joint venture between Mercedes and Geely).
Volvo Car and Polestar are both backed by China’s Geely.
Geely’s Chairman Li Shufu holds a 9.69% stake in Mercedes, making him the group’s second-largest shareholder after China’s BAIC Group.
EV FORECASTS
EVs made up 12% of total European light vehicle sales last year, according to consultant AlixPartners, and are expected to reach 15% this year.
Their market share is forecast to increase to 24% in 2027 and to 40% by the end of the decade, according to AlixPartners.
READ MORE
-
Connectivity, DC and high power: ORBIS’ three technology bets for eMobility charging in 2026
ORBIS is heading into 2026 with a clear technological focus: stronger connectivity, further development of its DC solutions and a decisive push towards high-power charging. The Spanish manufacturer is fine-tuning its portfolio to align with the evolving European regulatory framework, while introducing its new Viaris ISI charger.
-
The charger’s ‘face’: why the HMI decides the success—or failure—of public chargers
Touchscreens at charge points act as the human–machine interface (HMI). If the interface fails, so does the charger. How can we ensure an optimal customer experience?
-
EV panorama in Europe: electric cars pass the 20% mark as BYD steps up its EU push
Europe’s electric vehicle market continues to gain ground: battery-electric cars exceed a 20% monthly share in November, BYD triples its registrations, and Tesla extends its loss of momentum, according to the latest data from ACEA.
