10:32 01-02-2026

Volkswagen accelerates electric vehicle push to dodge EU emission fines

Volkswagen ramps up EV production to avoid EU CO2 penalties, with new ID. Polo and ID. Cross models launching by 2027. Learn about fines and industry trends.

Volkswagen is doubling down on electric vehicles for at least the next two years to avoid hefty EU fines for exceeding CO2 emission limits. The European Commission recently changed its penalty system, delaying fines by three years, so the first payments for breaching limits are now expected in 2028.

CO2 standards continue to tighten, and Volkswagen remains one of the most vulnerable manufacturers. Even with the purchase of carbon credits from cleaner companies, potential costs are estimated at around €1.5 billion. Another study suggests fines for 2025 could reach €2.2 billion.

To address this, Volkswagen will aggressively promote electric models in 2026–2027. Key new releases include the upcoming ID. Polo and ID. Cross, with the ID. Polo expected to start at about €25,000.

Other automakers face similar risks. Mercedes may exceed its target by roughly 12.5 g/km, risking a fine of approximately €712 million, though the company is already buying carbon credits from Geely. Stellantis is estimated to have overshot its limit by 6.6 g/km, with a potential fine of €1.03 billion.

Subaru is cited as the most problematic manufacturer in Europe for 2025 emissions, with an average of 169.9 g/km—78.7 g/km above the limit—and a potential fine of €128 million. Against this backdrop, dealerships are likely to see a surge in new electric models in the coming months.