7:56 am, October 31, 2020
Ford will buy credits from Volvo to avoid any potential fines for missing tough EU CO2 emissions targets.
The blue oval is hoping that Volvo’s range of low emission cars will help it avoid being slapped with hefty fines imposed by the EU for failing to reach stringent emissions targets.
The credits have been made possible thanks to a pooling system put in place by the EU so car manufactures can share credits between themselves.
Fiat Chrysler reportedly spent 1.8bn euro on CO2 credits from Tesla last year to swerve EU fines.
Ford’s buy-up of Volvo credits comes as the Swedish firm announces that it and affiliate Polestar will have reduced their own fleet emissions beyond their joint CO2 target for 2020, and consequently have credits to sell.
Any revenue made from the new deal with Ford will then be ‘reinvested in new green technology projects’, according to Volvo.
Hakan Samuelsson, chief executive of Volvo Car Group, said: ‘For Volvo Car Group, the future is electric and we are transforming our company through concrete action.
‘I am pleased to see that we are exceeding our CO2 reduction targets. It proves our strategy is the right one for our business and for the planet.’
Volvo has electrified nearly all of its line-up and is now the only carmaker to offer a plug-in hybrid version of every car it has on sale currently.
It is working towards the goal of having 50 per cent of its global sales as electric vehicles by 2025 and aims to be carbon-neutral as a company by 2040.
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