JLR Bracing For $117 Million CO2 Emissions Fine In Europe

Jaguar Land Rover is expecting to be hit with a £90 million ($117 million) fine in Europe, for failing to meet its CO2 emissions reduction targets this year.

The British carmaker says this will happen because of the delays it faced while trying to launch new plug-in hybrid variants of its models, which emit less CO2 than their gasoline or diesel counterparts, as reported by Autonews Europe.

“We are not happy that we will not be compliant in 2020, but a lot of that has been taken out of our hands,” stated JLR Chief Financial Officer, Adrian Mardell.

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Even though JLR did try to reach its fleet target of 95g/km CO2, having to halt sales of the Evoque PHEV and Discovery Sport PHEV (due to a discrepancy in emissions figures) made that an impossibility.

Mardell added that his company actually raised the amount it had set aside for penalties, from 58 million pounds ($75 million) to this latest figure of 90 million pounds ($117 million). However, he does expect JLR to hit its CO2 reduction target in Q4.

“I believe this will be a compliance quarter and we will be in credit. We are hopeful that 90 million is the worse it gets. It depends on the release of those vehicles [new PHEV models].”

The JLR CFO also said that sales of plug-in hybrids, together with the fully-electric Jaguar I-Pace, will account for around 11-12% of all JLR sales in the EU and the UK for the final quarter of 2020, adding that Jaguar Land Rover will be compliant in 2021, as a plug-in hybrid variant of the Jaguar E-Pace is also on its way.

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