FCA should be fine thanks to a deal to pool its fleet with Tesla, but what about Mercedes-Benz, Jaguar Land Rover and Volkswagen?

According to Bloomberg, several automakers in Europe are already on track to fully comply with tougher CO2 emission requirements (average of 95 grams of CO2 per km for new cars) in the European Union in 2020.

Those manufacturers are BMW, PSA Group, Renault and Volvo, all of which improved average emission (of new cars) through higher sales of plug-in hybrids and all-electric models.

We guess that Toyota with its vast hybrid share (half of the total volume) is also quite safe. That would also explain why there is no rush with EV/PHEV models.

Not all brands were mentioned, but among those who were listed, three are under the risk of exceeding the average CO2 emission limit, which will result in fines.

Those three are Daimer (Mercedes-Benz plus smart), Jaguar Land Rover and Volkswagen Group. All are trying to increase their plug-in car sales, but the article suggests that they lag behind the target.

The fourth with a weak result is FCA, but in this case, the fine estimated at one billion euro can be fully mitigated through a deal to pool the fleet with the Tesla brand.

Tesla is easily benefiting from the deal, because it sells only electric cars. It was estimated that the net proceeds from this single agreement will basically fund the Giga Berlin plant.

As far as the European Union is concerned, the manufacturers have no choice but to electrify their fleet on a mass scale. It's one of the main forces that drive investments in new platforms, new models and a more serious approach among the brands.

This year, more than 1 million plug-in electric cars should be sold in Europe, while in 2021 it might be closer to 2 million.