Honda Has No Intention Of Paying The New European Emission Fines — CleanTechnica Exclusive

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

e-Honda electric car

Europe has introduced a new Company Average Fuel Economy (CAFE) standard of 95gr CO2/km. This regulation comes with harsh fines. The fine, per car sold, is €95 gr/km for each gram over 95 gr/km when the fleet average is over 95 gr/km.

Simple example: the current average in the EU is about 120gr/km, 25gr/km over the target. That implies a fine of 25 x €95, which is €2,375 per car sold. There are some small mitigating refinements that we can ignore.

The top management of Honda in Japan has told their European organization that Honda is not going to pay any fines, according to a Honda press representative I spoke to this week. They will fight it any way possible. Honda is not a large brand in Europe, with less than 1% market share. Brussels will not be very impressed by the opinion of Honda.

With lobbying and a route through the courts unlikely to be successful, it seems the European Honda organizations have to do it themselves. The only viable option is to comply with the regulations.

The most promising route is a full marketing campaign to sell the new Honda e as much as possible. It is a very nice looking car, but with too small a battery and too high a price. Bigger batteries are expected for next year, too late to evade fines in 2020. Expect some real bargains at the end of 2020 if Honda does not reach the required numbers.

Another option Honda has is to delay until 2021 delivery of plug-less models with too much CO2/km that would put Honda in threat of fines.

Selling more plug-in hybrids would have been an option, if Honda had exported them to Europe. Perhaps we will see the Honda Clarity PHEV reaches European shores in 2020.

For now, all the sales managers of Honda importers and dealers will look at the number of Honda e sold each month. The first months are without a model on the showroom floors. What is a pity, because it is a really good looking car.

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Our Latest EVObsession Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.

Maarten Vinkhuyzen

Grumpy old man. The best thing I did with my life was raising two kids. Only finished primary education, but when you don’t go to school, you have lots of time to read. I switched from accounting to software development and ended my career as system integrator and architect. My 2007 boss got two electric Lotus Elise cars to show policymakers the future direction of energy and transportation. And I have been looking to replace my diesel cars with electric vehicles ever since. At the end of 2019 I succeeded, I replaced my Twingo diesel for a Zoe fully electric.

Maarten Vinkhuyzen has 279 posts and counting. See all posts by Maarten Vinkhuyzen