European Automotive Facts & Myths: Post #3 of 6

James Dainty January 8, 2015

In this third article of our six part blog series, we explore the significant costs associated with Automotive manufacturer compliance with governmental regulations related to vehicle emissions.

#3 FACT! Every gramme of carbon dioxide manufacturers eliminate costs 100 million Euros

While the long-term impact of Brussels’ regulations on the European automotive industry is yet unwritten, there is a present-day cost associated with compliance

Each gramme of carbon dioxide a manufacturer eliminates from its European fleet costs 100 million Euros.

Following Volkswagen’s assertion at the Paris Car Show that if fuel consumption rules are tightened again, this would be fatal, the European Union (E.U.) Commission’s director of Industry and Enterprise Carlo Pettinelli said Europe would indeed be seeking more from the industry even though the rules are already the toughest in the world.

As shared in an interview with Reuters in mid-2014, Volkswagen admitted that the cost involved in changing its vehicles to conform to increasingly strict EU vehicle emission laws would amount to 100 million Euros for each gramme of carbon dioxide eliminated. How automotive manufacturers address the cost base, adopt technology to model cost scenarios and compensate are yet to be decided.

Want to learn more?

Download the whitepaper, How Automotive Manufacturers Can Navigate the Cost of Increased Government Regulation, to learn more about these issues, and about new strategies that can help automotive manufacturers navigate the cost impact of these requirements across the entire product development process. This whitepaper also presents ways to identify new cost savings on individual parts and products as well as entire product assemblies and platforms to offset the increased costs of new regulations.


Other posts in the European Automotive Facts and Myths series

FACT!  Manufacturers must produce more efficient cars

MYTH!  Brussels has dealt a fatal blow to car manufacturing

MYTH!  The current automotive product development and costing process is efficient

FACT!  The automotive industry is slow to adopt new technologies

MYTH!  New technologies are powerless to help manufacturers improve costing systems


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