It may sound a bit crazy, but the Volkswagen Group gets more breathing space in terms of CO2 emissions thanks to MG. It will be in the same ‘CO2 pool’ together with MG and its parent company SAIC.
EU legislation allows car manufacturers to have less and less average CO2 emissions from their new fleet year after year. Those requirements appear to be difficult for some to meet and a possible solution is to join forces with an EV manufacturer. Fiat Chrysler previously did this by placing Tesla in its own ‘CO2 pool’ with a mega investment. Now the Volkswagen Group is doing something similar with its Chinese joint venture partner SAIC and its subsidiary brand MG. Volkswagen announced this via LinkedIn.
Since MG has gained considerable traction with its electric cars, this will of course significantly reduce the average CO2 emissions of the new group of Volkswagen-SAIC. In this way, there is more room for Volkswagen before fines are handed out by the EU. Of course, Volkswagen is also working hard on electrifying its range in the meantime. After all, in the long run the stretch will disappear and it turns out to be an increasingly attractive market.