Ford is looking to buy emissions credits from other carmakers to meet its European carbon dioxide targets so that it can avoid hefty fines for missing them. According to Autocar, the Blue Oval was due to hit those targets this year until it recalled the Kuga plug-in hybrid and placed a stop-sale order.
The setback means that the company won’t be able to achieve the targets “on our own”, it said in a statement. As such, Ford will need to buy credits from higher-performing carmakers to offset its own emissions. At least it won’t have to pay too much – the European Federation of Transport and Environment said that Ford was less than 1.4 grams per kilometre from meeting its targets at the start of the year.
No indication on who Ford will buy its credits from just yet, but the news comes days after Renault announced it was going to open its emissions pool to other carmakers, hinting that a collaboration between the two is possible. Volvo is also said to be considering doing the same.
The Kuga plug-in hybrid recall is a blow to Ford’s electrification efforts, as the car had accounted for half of all Kugas registered across Europe in the second half of the year. The company pulled the PHEV from sale after four fires were reported, likely due to the batteries overheating. Owners who have received their cars were advised not to charge them up and drive them only in EV Auto mode until the issue is resolved.
Issues with passenger cars aside, Ford is expected to meet its targets for light commercial vehicles, so much so that it is planning to open its own pool for other manufacturers. “We have filed separately our intent to form an open pool so other OEMs – including Volkswagen AG – can benefit from the positive CO2 performance of our light commercial fleet,” it said.
This isn’t the first time a carmaker is buying credits from another. Last year, it was revealed that Fiat Chrysler Automobiles (FCA) spent “hundreds of millions of euros” to offload its emissions to Tesla.
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“Last year, it was revealed that Fiat Chrysler Automobiles (FCA) spent “hundreds of millions of euros” to offload its emissions to Tesla.”
This is actually the business model of Tesla.
I should start a carbon sink company by doing…. nothing.