New economic regulations in Europe will cost Volkswagen 1.5 billion euros

This year the European Union is introducing more stringent emissions requirements, which Volkswagen does not meet. The automaker, plunged into financial crisis, will lose about 1.5 billion euros this year alone. This is the conclusion reached by Volkswagen’s head of investor relations, Rolf Woller. He took into account large fines and a decrease in income from the need to sell more electric cars.

According to new EU regulations, about 22 percent of cars sold by companies must be electric. According to the European Automobile Manufacturers Association (ACEA), this is still far away: the share of electric vehicles in 2024 was only 13 percent.

The authorities are going to impose fines on the industry totaling about 15 billion euros. Volkswagen Group will suffer the most: it will be fined 7.7 billion euros. Renault-Nissan-Mitsubishi will have to pay 1.7 billion, Stellantis – 1.6 billion.

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In addition, Volkswagen will suffer losses due to a forced shift in the focus of sales from “fuel” cars to electric vehicles.

Manufacturers and some lawmakers are calling for a relaxation of EU requirements so as not to put pressure on the already struggling auto industry. Demand for electric trains in Europe continues to fall amid increasing competition from Chinese brands.

Volkswagen itself believes that it has a lot to learn from the Chinese. The head of the auto giant, Oliver Blum, compared China to a fitness center and said that the Germans should borrow China’s approach to developing new technologies.

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