G9L. Image credit: XPENG
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Well, this is an interesting one….
For some background, regulations in the European Union require that automakers reduce the CO2 emissions that the cars they sell create. Year after year, they have to cut their average fleet emissions. If they don’t cut their emissions to the necessary level, they have to pay huge fines.
However, there is a loophole (of course). An automaker can join a pool of other automakers and as long as the average is at the target level, all is good. Of course, for a below-par automaker to get into a pool with an above-par automaker, the former has to pay the latter. As long as the fee is a decent level below what the fines would be, it’s easy business, especially for an EV producer.
