French Automakers Backing German CO2 Emissions EU Plan

The German automakers had been fighting tooth and nail against the EU lowering CO2 emissions limits, and after months of fighting the EU, the RenaultRenaultFrance, 1898 > present189 models
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and PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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are joining with the German automakers to fight against the EU.

German Chancellor Angela Merkel has offered a plan backed by the German automakers that would lower CO2 emissions to 95g/km but allow automakers to trade credits to offset the emissions of larger vehicles. The full 95g/km of CO2 would be implemented in 2024.

So far, the plan has met with criticism from the rest of the EU, but Renault and PSA have recently joined onto the plan.

Previously, the French had supported the lower CO2 limits because they tend to make smaller, more efficient cars than the luxury automakers in the UK or Germany. However, Renault and Nissan are building a strong relationship with DaimlerDaimlerGermany, 1889 > present12 models
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. PSA wants to re-sign an engine-sharing deal with BMWBMWGermany, 1918 > present87 models
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, and PSA is 7% owned by GMGMUnited States of America, 1998 > present8 models
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.

The French automakers strong connection to Germany pushed them to change their decision.

The EU’s Transport & Environment lobby claims that the German plan would mean actual CO2 emissions in Europe in 2020 would be 104g/km of CO2 and would cost drivers €138 a year in fuel costs.

Source: Automotive News Europe