Thursday, April 3, 2025

Volkswagen warns of losses of 11 billion kroner

Volkswagen stands to lose a whopping 11 billion kroner. Money that the already crisis-stricken car manufacturer will need to pay fines to the EU.

Volkswagen stands to lose 11 billion Danish kroner as a result of the EU's new emissions requirements. The group warns that the new rules will entail significant costs.

The EU's new emission requirements came into effect at the turn of the year. The requirements lower the permitted carbon dioxide emissions per car to 93.6 grams per kilometer.

For Volkswagen, and other car manufacturers, this could have major economic consequences, writes Bloomberg .

Volkswagen anticipates stalls and other costs of approximately 11 billion Danish kroner distributed across the group's various car brands in Europe.

"The expected costs include potential penalties for exceeding the EU's tougher emissions targets," said Rolf Woller, head of investor relations at Volkswagen AG, during a telephone call with a number of analysts.

In addition to stalls, Volkswagen may be forced to increase sales of electric cars, which often have a lower profit margin than gasoline and diesel cars.

Several experts predict that the price of electric cars will fall over the course of the year, as manufacturers are pressured to increase the share of electric cars in their total sales.

The industry organization ACEA, of which Mercedes' Swedish-German director Ola Källenius has just become chairman, has called on the EU to change the rules.

The EU has responded by proposing new purchase subsidies for electric cars, to be applied in all EU countries. According to the Vice-President of the European Commission, this should do away with anything other than electric cars.

While Volkswagen and other car brands face major challenges, there are also companies that can benefit from the new rules.

Tesla is expected to be able to sell emissions rights for billions of kroner. Even the smaller Polestar brand is expected by analysts to earn billions of kroner on the new quota system. Read more about it here .

Volvo Cars will also sell emission allowances. However, the Chinese brand has not disclosed how much it stands to earn.

The situation is complex and highlights the upheavals facing the automotive industry in the transition to more sustainable transport.

Latest

Don't miss

Chinese Xpeng booms ahead – sets new sales record

Chinese electric car manufacturer Xpeng ended 2024 with a...

Police are on the lookout after a new attack on Tesla

Police in Germany are without conclusive evidence after a...

70,000 drivers have ordered a car that doesn't exist

The Aito M8 is a new car from a...

Tariffs force Polestar to stop importing cars

Like the US, Canada, two countries already engaged in...

Forbes: Tesla in crisis – and it only gets worse from here

Tesla sales are falling sharply, Chinese competitors are advancing,...
Boosted Magazine
Boosted Magazine
Boosted in Denmark has over a million unique users, surpassing two million sessions, and accumulating over seven million page views each month, and our platforms has become a hub for automotive enthusiasts. Now you can enjoy our content in English too! Enjoy our free car news - every day. Want to talk to us? Write an email to boosted@boostedmagazine.com
spot_img

Elon Musk leaves the White House – will return to Tesla

The dialogue between Elon Musk and Donald Trump appears to be over. At least the closest one. The Doge division, which the billionaire heads,...

Tax Minister: Advantage of removing registration tax

Tax Minister Rasmus Stoklund (S) now acknowledges that it is an advantage to remove the registration tax on electric cars. The question is whether...

Only 3 percent of new cars in Denmark run on diesel

Since Volkswagen ruined the reputation of diesel cars with dieselgate, sales of diesel cars have plummeted, and are now down to 3 percent in...

Volkswagen ID.7 drops 67,000 kroner in price

Volkswagen is now trying to boost sales of the electric Passat, ID.7, by reducing the price by a whopping 67,000 kroner in the Netherlands....

New Schumacher? Ferrari signs contract with 13-year-old boy

They are getting younger and younger. Also in motorsport, where Ferrari's Formula 1 team believes so much in Englishman Noah Baglin that the brand...

17 cars burned down at Tesla dealership in Rome

Police in the Italian capital Rome are investigating a fire that destroyed 17 Tesla cars. Drone footage shows the destroyed cars. On Monday night,...

New test debunks long-standing myth about electric cars

It's a myth that electric cars are always the cheapest. Yet many drivers believe that driving on electricity is almost free compared to gasoline....

Tesla crisis: Should Tom Zhu replace Elon Musk as CEO?

Falling shares, vandalism and criticism have investors demanding new Tesla leadership. Tom Zhu from Tesla in China is now mentioned as a realistic candidate....

Battle for electric car customers: Get a free car wash when you charge your electric car

New campaign from Uno-X and Plugsurfing will reward electric car drivers in Denmark with a free car wash after charging 75 kWh. Charge your...

Wants to go to Denmark – car brand plummets after fatal accident

Chinese Xiaomi plans to sell its cars in Europe, including Denmark. However, a violent fatal accident has caused the brand's stock to plummet. Xiaomi's...

How expensive is a service for the Mercedes-AMG One?

The Formula 1 car with license plates is not a cheap pleasure. A service of the Mercedes-AMG One alone will ruin most fatal drivers....

Famous car crash results in prison sentences for two Volvo owners

The so-called Thursday meeting at the port of Roskilde is now leading to prison sentences for reckless driving for two Volvo owners. And even...