Bugatti, Rolls Royce, Maserati, Lamborghini, Bentley to suffer penalty of upto €40,000 due to European Union carbon tax

Premium luxury car manufacturers in Europe including, Bentley, Lamborghini, Maserati, Rolls Royce and Bugatti, are in line to suffer heavy penalties due to EU carbon emission targets. According to European Union Environment Agency (EAA), French car maker, Bugatti, manufacturer of the world’s fastest production car, Veyron, will be levied with the highest penalty of €40,000 ($52,563) for each of their cars sold in Europe.

British car manufacturers, Bentley will be penalized €20,000 ($28,281) and carbon penalty for Rolls Royce cars is at €12,500 ($16,427). Italian luxury sportscar maker, Maserati and Lamborghini will be penalized €18,000 ($23,654) and €17,000 ($22,339) respectively for every car they sell in Europe. As of now it is not clear whether these penalties will be levied directly on the buyer or on the manufacturer. Either way luxury car buyers in Europe will have to take the brunt of these carbon emission penalties.

EEA aims to reduce carbon emissions from European cars to 130 gms/km by 2015, from the current levels of 140 gms/km. If we consider luxury cars mentioned above, then Bugatti Veyron emits 539 gms CO2/km, Bentley emits 300 gms CO2/km, Rolls Royce is at 370 gms CO2/km, Maserati emits 350 gms CO2/km, and Lamborghini emits 340 gms CO2/km. (average CO2 emissions)

EEA said that combined penalty from all car manufacturers in Europe could result in charges of €10 billion ($13.14 billion). Speaking about these charges, Mr Sigrid de Vries, European Automobile Manufacturers’ Association, said, “That is obviously a huge amount for any industry. No other sector has faced such stringent carbon emission limits.”

But then, there is a way which will help luxury car makers survive in Europe. Luxury car makers can pool with bigger car manufacturing companies or their parent companies in order to avoid penalties. For Eg, Bentley has already announced that they will be pooling with their parent company Volkswagen, who manufactures two of the highest selling and environment friendly cars in Europe, Golf and Polo, in order to avoid/reduce penalty. On similar lines, Maserati will team up with their parent Fiat Auto, Rolls Royce with BMW, and, Bugatti and Lamborghini will pool with Volkswagen, in order to save on penalties.

Pooling will not erase penalties completely; car manufacturers whose products have high carbon emissions will have to work towards developing greener and more efficient engines. Bentley has already launched their new 4.0L V8 which is not only more powerful but 40% more efficient than the previous model. Similarly other car manufactures are also working on developing new engines that will be more efficient and reduce carbon emissions.

Environmentalists are unhappy with the new European Union carbon tax. Environmentalists said that luxury car makers pushed very hard. Mr Dudley Curtis, Transport & Environment, a Brussels based campaign group, said, “They lobbied very hard. The CO2 targets were higher than first planned, and came into force three years later.”


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