Volvo Cars, which is 78.7% owned by China's Geely, has opened its European Union CO2 fleet emissions regulatory pool for 2024 according to official documents and Schmidt Automotive research.
The Swedish-based company has potentially found its first pool partner, revealing its intention to pool with Japan's Suzuki, which traditionally pooled with fellow Japanese companies, Toyota and Mazda in previous years. Polestar will also be part of the Volvo Cars pool. Traditionally unable to meet its CAFE targets alone, Suzuki, which registered 154,948 passenger cars across the EU last year according to ACEA data, or 1.5% market share of the 27 EU market, making it almost equivalent to Nissan (1.9%) during the same period, doesn't currently offer a pure electric BEV model of its own giving it a handicap in meeting targets. In its product line-up it offers one plug-in hybrid vehicle (PHEV), the Suzuki Across, which is essentially a rebadged and licensed RAV4 model from Toyota. However thanks to the small car mix of Suzuki's new car sales, its CO2 fleet emissions are already close to compliance with the Hungarian manufactured vehicles achieving 123.6g/km fleet emissions in 2023 and the Japanese manufactured models achieving 111.3.g/km according to official European data . The average mass-weight based targets for 2024 remain at an average of 118g/km in the WLTP cycle before falling to an average of 93.6g/km from 2025.
However the financial payment to Volvo Cars is likely to be minimal, thanks to Suzuki's relatively low CO2 average, which was reflected by Volvo Cars CFO Johan Ekdahl during the company's Q3 results call. Ekdahl said that there is a significant upside going forward thanks to their high plug-in penetration but expects more potential from 2025 than 2024.
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*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK
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