VW wants to transfer Tesla to billions of euros: The reason is diesel & co news

According to insider details that are available to the Reuters news agency, a VW subsidiary in China should pay money to Tesla. The exact height is still unclear, but could move in the low billion dollar range. Through this measure, Volkswagen buys Tesla’s emission credits to comply with local environmental regulations.

It is still unclear how many so-called "green credits" will buy the Chinese jointventure FAW people from Tesla. It is spoken of the equivalent of 385 euros per credit, a higher price than in previous years. With the payment, Volkswagen, the largest foreign car manufacturer in China, supports a competitor with Tesla. At the same time, the Wolfsburg -based company plans to increase its production of electric vehicles in China. The subsidiaries there are to launch five electrical models of the ID series this year.

VW wants to transfer Tesla to billions of euros: The reason is diesel & co news-tesla
Imago Images / VCG VW wants to transfer Tesla to billions of euros: The reason is diesel & co

Volkswagen faces major challenges

This process, which is also the first of this kind between two companies in China, illustrates the extent of Volkswagen’s task of converting its fleet, which is largely made of combustion, and doing Tesla competition. In China there is a kind of point system for car manufacturers that should motivate them to manufacture and sell environmentally friendly vehicles. These include savings in fuel consumption as well as hybrid and electric vehicles. In order to comply with the increasingly strict legal requirements, FAW people finally entered the deal with Tesla. Both companies did not provide any further information about the process. Only Volkswagen commented to achieve strategic goals, you have to comply with the requirements in China and, if necessary, buy environmental points.

Paragraph of Volkswagen electric cars in China expandable

China is the world’s largest automotive market. Last year more than 25 million vehicles were sold there. The market share of FAW-Volkswagen was 2 of them.16 million new vehicles. However, according to the Chinese Ministry of Industry and Information Technology, Volkswagen is on one of the last places in terms of environmental balance. This is because the Volkswagen cars and SUVs are mostly bought with an internal combustion engine. The electrical variants are far less popular.

Tesla has also sold environmental bonuses to other manufacturers

For example in the United States, where similarly strict environmental regulations apply, Tesla has sold emission credits to competitors Fiat Chrysler, now part of the Stellantis Group. However, no such business has become known for China. Tesla started the production of e-cars there at the end of 2019. According to the financial and tax authorities, Tesla in 2020 has taken a total of 1.33 billion euros through the sale of environmental bonuses.

This article was written by Christian Lutz
The original to this post "VW wants to transfer Tesla to billions of euros: The reason is diesel & co" comes from site.

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