Picture: REUTERS/DENIS BALIBOUSE
Picture: REUTERS/DENIS BALIBOUSE

Paris/London — As car makers pour billions of dollars into preparing for electric vehicles and stricter emission controls, among other changes in the industry, an environmental lobby has handed out progress reports.

The Carbon Disclosure Project ranked responses from 16 manufacturers on three main issues: progress towards meeting emissions standards; strategies on using self-driving technology and renewable energies; and management incentives to lower carbon emissions.

The results put German car makers BMW and Daimler in pole position, with Subaru of Japan bringing up the rear.

Car makers are facing increasing costs to comply with stricter emission regulations. The Carbon Disclosure Project expects these will rise threefold by 2025 to more than $2,200 to outfit each vehicle with carbon dioxide caps.

In Europe, where new emissions rules are set to take effect in 2021, half of the companies surveyed by the group could face fines. Fiat Chrysler Automobiles was the most at risk and may have to pay a penalty of €938m, it said.

General Motors stands out as one of the most ambitious when it comes to setting targets for automation, ride-sharing and electrification, followed by Volkswagen and BMW, according to the study.

Yet car makers’ spending on research and development, which is 4.6% of sales on average — relatively high compared with most other sectors — lagged behind tech companies entering the market such as Google, Apple, Baidu and Uber, it said.

Kia Motors, Great Wall Motor and Volvo owner Geely Automobiles did not respond to the Carbon Disclosure Project survey.

Bloomberg

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