Stellantis, Toyota, Ford, Mazda, and Subaru plan to pool carbon emissions with US EV manufacturer Tesla in an effort to meet stringent European carbon reduction targets, according to official EU documentation.
Others, including Volvo, Polestar, and Smart, are set to pool emissions with Mercedes-Benz, the same documents reveal.
Missing the targets by even one percentage point could incur fines of €300 million ($312 million) under the EU’s 2025 Corporate Average Fuel Economy (CAFE) standards.
Stellantis, Toyota, Ford, Mazda, and Subaru plan to pool carbon emissions with US EV manufacturer Tesla in an effort to meet stringent European carbon reduction targets, according to official EU documentation.
Others, including Volvo, Polestar, and Smart, are set to pool emissions with Mercedes-Benz, the same documents reveal.
Missing the targets by even one percentage point could incur fines of €300 million ($312 million) under the EU’s 2025 Corporate Average Fuel Economy (CAFE) standards.
As a result pooling arrangements have now become a high-priority, with industry expert Matthias Schmidt noting that “securing pools has moved from a non-descript back office to the CEO making the calls between various partners.”
According to Reuters, Stellantis has confirmed the group’s participation, citing the need to meet 2025 targets while continuing to develop low-emission cars. The group has previously said it must increase EV sales in Europe from the current 12% to 21% by 2025.
Schmidt observed that Stellantis, a former Tesla pooling partner, has returned despite previous claims it could meet targets independently while Ford has openly struggled to ramp up BEV production
He added that Volkswagen is likely to form pools with Chinese partners while BMW, however, insists it will meet targets without forming pools.
Manufacturers wishing to join the open pool must submit their full application by no later than February 5, and must sign a non-disclosure agreement and provide the pool manager with details about their CO2 emissions to allow assessing whether there is a risk for the pool not to meet its targets and their ability to cover any potential excess emissions premium.
In December, Luca de Meo, president of the European Automobile Manufacturers’ Association (ACEA) and CEO of Renault Group, urged European lawmakers to take action in the face of depressed EV adoption: “Without a clear political statement by the European Commission by the end of 2024, as also urged by the German, French, Italian and other European governments, the auto industry risks losing up to €16 billion in investment capacity by either paying penalties, reducing production, pooling with foreign competitors or selling electric vehicles at a loss.
“Waiting for the start of the Commission’s Strategic Dialogue on the future of the automotive industry or for the 2026 review of the CO2 legislation is not an option, welcome and necessary as both may be. Manufacturers need clarity now to finalise compliance strategies, making pooling arrangements and other provisions for 2025.”
For Tesla, any revenues from pooling agreements may provide a cushion amid macroeconomic pressures. Tesla delivered 512,250 vehicles in Q4, slightly missing its 1.8 million annual target, raising concerns about its ability to navigate tightening market conditions and global uncertainty.
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