VW to pool CO2 with SAIC, MG as hedge against EU fines

Volkswagen Group will pool its emissions with longtime Chinese joint venture partner SAIC Motor and its subsidiary MG Motor, according to documents filed with the EU.

The move will allow VW Group to benefit from strong demand for the zero-emissions ZS EV, a small full-electric SUV that is offered in markets such as the UK, Norway and France. MG is scheduled to add a second EV this month, the MG5 compact station wagon.

Starting in 2021, fleet emissions from automakers competing in Europe need to drop to 95 grams per km from an average of 121.8g/km last year, according to market research JATO Dynamics. Automakers that fail to reach their individual targets face EU fines.