Auto manufacturing countries urge EU to waive Co2 fines: Report

Leaders of major auto hubs such as Germany, Czech Republic and Italy put pressure on Brussels on Thursday to do away with financial penalties on carmakers that do not meet thee EU emissions target from next year, Reuters reported.

German Chancellor Olaf Scholz noted after a summit of EU leaders, that it did not make sense to add to industry's woes and fines should not hamper companies' capabilities to invest in electric vehicles.

Scholz welcomed a plan by the European Commission President Ursula von der Leyen, to engage in a 'structured dialogue' with the auto industry, Reuters noted. EU leaders agreed to a discussion at the next EU summit in March, the newswire further stated.

European carmakers could face a fine of as much as 15 billion euros in penalties for not adhering to the targets, as per industry estimates, with Volkswagen being the most affected, Reuters noted.

France also joined the opposition to the fines this week. The EU's 2025 targets set a Co2 limit that manufacturers must meet on average across the fleet of cars they sell in the year. 

A fall in sales could increase a manufacturer's average fleet emissions, causing them to miss the Co2 goal. 

Austria, Bulgaria, Slovakia and Romania have also asked the EU to take a relook at the Co2 cutting policies for cars. Only a clutch of countries, including Volvo's home country Sweden, have spoken in favour of keeping the fines.