CHALLENGES FACING EUROPE’S CAR INDUSTRY

Strict new carbon dioxide emissions targets will be phased in next year across the EU, with the threat of punitive fines for those who fail to comply. Under the rules, carmakers must cut their average fleet emissions to less than 95 grammes of CO2 per kilometre by 2021. They face a €95 fine for every gramme of CO2 that exceeds the target  multiplied by the number of cars sold that year. There is a potential €30bn penalty for the industry.