Suzuki has entered into an agreement with Swedish-Chinese Volvo. The agreement means that the Japanese pay a fortune for necessary CO2 quotas.
Suzuki faces a potential ban from the EU, as the current emissions requirements for car manufacturers will be tightened significantly next year.
In order to counter the threat from the EU and avoid a significant financial expense that the stalls will incur, Suzuki has entered into an agreement with Volvo to become part of their emissions pool.
Car manufacturers that do not meet EU requirements can choose to share the emissions with other manufacturers through such a pool.
That's what We Bilägers write.
This lowers the average figure and helps meet the strict emission requirements. Volvo Cars and Polestar have established a joint emissions pool for 2024, and according to automotive analyst Matthias Schmidt, who has reviewed official documents, Suzuki may be the first partner in this pool.
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Although Suzuki does not yet sell electric cars, their average CO2 emissions have been reduced thanks to a collaboration with Toyota, where two Toyota models, the hybrid Swace and the plug-in hybrid Across, are sold under the Suzuki brand.
It is not yet known how much Suzuki will pay Volvo to become part of the emissions pool. For Tesla, this type of deal has proven to be a lucrative business.
This year alone, the electric car manufacturer has earned over DKK 14 billion from the sale of emission rights, which illustrates the considerable fortune that is at stake in connection with CO2 quotas.
Suzuki is far from the only car brand that from 1 January 2025 will be in serious trouble due to the tougher EU requirements. In fact, only Volvo's owner, the Geely group, and Tesla can currently meet the rules.
The problem with the very high stalls has caused several of the other large car groups to protest. At BMW, director Oliver Zipse believes, for example, that neither the stalls nor the upcoming total ban on the internal combustion engine makes sense.
ACEA, which is an association of most European car brands, also wants the stalls taken off the table. Read more about it here .
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