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October 08, 2019 03:20 AM

Peugeot is already compliant with 2020 EU CO2 emissions, CEO says

Luca Ciferri
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    Peugeot 3008 production

    Peugeot started production this month of the model mix it will need to bring its fleet CO2 average in line tougher tougher EU rules.

    GRANDOLA, Portugal -- The Peugeot brand will not have to pay fines on emissions for its European sales in 2020, its CEO said.

    “Our October production that will turn into registrations in January is already fully compliant with the average of 93 gram per kilometer of CO2 the Peugeot brand has to achieve next year,” brand CEO Jean-Philippe Imparato told Automotive News Europe on the sidelines of a media event here on Oct 1.

    Imparato said paying fines is not an issue at Peugeot, which starting next year will check its average CO2 emissions against EU registrations every week.

    “We do not need to force self-registrations of high-emitting models by year-end because we are already aligning production with next year's emissions needs,” he said.

    Analysts have warned that automakers could be hit with billions of euros in fines for missing the European Union’s fleet CO2 emissions reduction target, imposed to reduce the impact of climate change.

    The growing popularity of SUVs, which are less fuel efficient than hatchback or sedan equivalents, and bans on older diesels in some European cities are among factors hurting car companies' ability to reduce emissions.

    Declining diesel

    In March 2018, PSA Group CEO Carlos Tavares said the French group would need electrified models -- battery-driven cars such as the new Peugeot e-208 and plug-in hybrids -- to account for 7 percent of its sales while diesel would account for about 10 percent to comply with the EU's 2020 CO2 emissions target.

    Last month at the Frankfurt auto show, Tavares said that the decline of diesel is not as steep as he had feared 18 months ago, so he sees them accounting for 20 percent to 25 percent of PSA Group's sales next year.

    Peugeot's Imparato said the diesel share has declined by about 7 percentage points a year in the past four years -- from about 60 percent in 2015 to about 34 percent so far this year. But he declined to say where he sees it going next year.

    “I have ordered a certain mix of diesels,” he said, “but I am not going to make it public.”

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