Put this in the ‘beyond ridiculous’ file that explains the current situation of a contracting European economy; specifically, in the auto sector.
Europe has fines associated with the production of gasoline powered engines if the auto company doesn’t hit targets for sales of electric vehicles. The fines triggered this year. In order to avoid paying the European fines the auto makers are forming alliances with Chinese EV makers to purchase carbon credit offsets.
In essence, EU car companies buy Chinese car company carbon credits, to avoid the EU fines. The Chinese car companies can then use the carbon credit revenue to subsidize lower priced Chinese EVs to the European car market, thereby undercutting the European EV car companies. BRILLIANT!
MILAN, Oct 21 (Reuters) – Automakers have formed alliances to help them avoid hefty European Union fines on carbon emissions by purchasing credits from electric vehicle companies. Several legacy automakers face potential fines as the transition to EVs in Europe has proved slower than expected in recent years.
EU fines – which automakers have said could reach up to 15 billion euros ($17.5 billion) – were initially envisaged on 2025 carbon emission levels. In March, however, the European Commission yielded to pressure from automakers and allowed compliance based on their average emissions over 2025-2027. (read more)
Nissan is purchasing carbon credits from China’s BYD (Build Your Dream). South Korea is purchasing from Xping. Mercedes and Volvo are purchasing carbon credits from Chinese automaker Geely.
BYD and Geely are selling super cheap EVs into the entire EU car market. lol 😂 You can’t make this stuff up.
The EU economic offset plan? Let’s go to war with Russia.
Brilliant!
China is the biggest polluter in the world.
should be called ‘ Government Car Price reduction Credits ‘ for specific types of cars.
Those green incentives are much of the reason why a new pickup peaked over 100k in the last couple years aside from fleetwide CAFE standards.
how does that work..
The idea is taking less of a loss on battery electric models that few wanted by making up some of the difference on the more conventional models with a gasoline or diesel engine.
Never mind that the automakers priced thier electric models with the subsidy in mind which made them conveniently that same ~$7,500 more than a comparable non-electric model.
interesting.
Eliminate CAFE standards!
Tesla made billions selling carbon credits to car makers trying to meet EU standards.
so the gov gives it to Tesla, and Tesla sells it to Car Sellers…. (question)
i know its simple, just hasnt clicked for me yet
This is quite the show – the Grand Suicide of Europe.
“– the Grand Suicide of Europe.”
Not all of Europe. Just the plebeians. And it’s assisted suicide.
The castle dwellers who are making these rules are prospering just fine, as usual.
BYD and Greely have expanded overseas with increased expansion of production facilities outside China for reasons tagged as “avoid tariffs” and “strengthen their global market positions”.
BYD has factories in Russia, and Spain, too; with production plans for expansion in Mexico and Brazil.
Geely has a 50-50 joint venture with Jaguar Land Rover’s vehicle production in China. Geely has collaboration with Huawei and Alibaba. The BYD Seagull and Geely’s Chery New Energy minivehicles are centered in China.
’21 Years in the Making’ – Chery goes public leveraging global markets to take on BYD and Geely
https://chinaevhome.com/2025/09/25/21-years-in-the-making-chery-goes-public-leveraging-global-markets-to-take-on-byd-and-geely/
I have a Vintage Collection of air guitars for sale, sounds just about equal to carbon credits…
Cutting of one’s nose to spite one’s face, climate change style…….
The Chinese must hardly believe how stupid the west’s leadership is
Nah, they’re just pretending to be stupid.
When you make that many “mistakes” – always the opposite of what helps your citizens – that consistently, for that long…
There is no longer any doubt left for them to take the benefit of. Hanlon’s Razor has worn through.
Nobody should be pretending that malice is stupidity any longer, not even to be nice.
Certainly not when “nice” is suicidal.
its a reward system. make mistake get reward
Professing themselves to be wise they became fools