Honda joins Fiat in tapping Tesla for Europe emission compliance

Honda was newly added as of last week to a European Commission filing in which manufacturers declare their intent to join together in meeting greenhouse-gas emissions standards.
By : Bloomberg
| Updated on: 02 Nov 2020, 06:50 PM
Honda will pay $85 million to settle an investigation by most US states into its use of defective Takata airbag inflators in its vehicles (REUTERS)
Honda will pay $85 million to settle an investigation by most US states into its use of defective Takata airbag inflators in its vehicles (REUTERS)
Honda will pay $85 million to settle an investigation by most US states into its use of defective Takata airbag inflators in its vehicles (REUTERS)
Honda will pay $85 million to settle an investigation by most US states into its use of defective Takata airbag inflators in its vehicles

Honda Motor Co. has joined Fiat Chrysler Automobiles NV in pooling its fleet with Tesla Inc.’s to comply with Europe’s tougher emissions standards for passenger cars this year.

Honda was newly added as of last week to a European Commission filing in which manufacturers declare their intent to join together in meeting greenhouse-gas emissions standards. Fiat Chrysler had already reached an agreement to pool its fleet with Tesla’s.

(Also read | Honda launches exclusive edition Amaze and WR-V. Here's all that's special)

European Union rules that took effect this year force manufacturers to reduce the average emissions of the fleet of cars they sell in the region to 95 grams of CO2 per kilometer, or face hefty fines. As a result, companies have been introducing new plug-in hybrid and fully electric models, and those that are at risk of falling short of compliance have paired up with peers who are better positioned.

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Last week, Volvo Cars announced it will overachieve in meeting the regulations and allow Ford Motor Co. to pool with its fleet for an undisclosed sum. Fiat Chrysler Chief Executive Officer Mike Manley told analysts last week that the company was locked into an agreement to pay Tesla through next year for its help meeting emissions standards.

First Published Date: 02 Nov 2020, 06:50 PM IST
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