Vehicle manufacturers with a high average CO2/km may have to invest more in new technology, modify business models to produce lower emitting vehicles or face escalating fines for non-compliance. Companies that rely on carbon-intensive processes and materials are also in danger of being exposed to production carbon costs.
The report shows that manufacturers could face significant fines for non-compliance with EU legislation on carbon emissions from cars although some manufacturers are better placed than others. Renault and Peugeot produce lowest average sales weighted CO2/km cars, Porsche produces highest average sales weighted. Manufacturers are not disclosing appropriate data for investors to assess exposure to carbon regulatory risk.