Volkswagen Group expects to be fined by the European Union this year for failing to achieve its CO2-reduction target for its new-car fleet — despite the automaker’s deal to pool emissions with Chinese-owned U.K. brand MG Motor.
“We cannot provide a clear commitment at this point that we will achieve compliance. It will be a difficult race,” VW Group sales chief Christian Dahlheim said during the automaker’s third-quarter earnings call on Oct. 29.
VW had hoped its new ID3 full-electric compact hatchback would help ensure carbon compliance, but software issues plagued its September launch. Current orders for the ID3 were a little more than 40,000, Dahlheim said.
