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A recall of Ford’s hybrid sport-utility vehicles means the American auto giant will exceed European limits on greenhouse-gas emissions, and face a fine, unless the company partners with another automaker to pool fleets and meet EU standards.
Arthur Wheaton
Director of Labor Studies, ILR School
Arthur Wheaton, an expert on the automotive industry at Cornell University’s School of Industrial and Labor Relations says it is common for automakers to pool sales in order to meet emission standards and that Ford will be forced to make a quick deal.
Wheaton says:
“Ford is facing some possible fines in Europe if they are unable to find a partner to meet emission standards. There is a very common practice for companies to pool sales in order to meet emission standards. Tesla has been doing this from the beginning as they have no truck sales and have excess CO2 or emission credits to trade, sell or pool with other automakers.
“Ford’s plans were disrupted by a recall of their fuel-efficient alternative vehicles and they need to make a quick deal to pool sales. This is not the same as a takeover or buyout of another company and has very little to do with corporate control. It is very much related to finding accounting methods to meet regulations.
“Ford has multiple deals in place to increase alternative vehicle sales and bringing more options to Europe in the near future is very likely.”
