Ford exit makes JLR cars face emission penalties in Europe

Yet another news on Tata Motors Jaguar and Land Rover foray in Europe. As Tata Motors gets ready to formalize the deal by June, there is news that the two iconic brands may face stiff penalties on new car sales as their average carbon dioxide emissions would be much higher than the proposed European Commission norms which get in force from 2012. The proposal aims at reducing greenhouse gas emissions and meet Kyoto Protocol targets, and will reduce the average CO2 emissions from new passenger cars in Europe from around 160 gms per km to 130 gms per km in 2012.

The emission issue has the potential to become a major roadblock for Tata Motors. While JLR could have offset higher CO2 emission of its fleet by balancing it by Ford’s fleet of light low-emission cars, the same is not possible under Tata Motors as it does not sell cars in Europe. So the exit of Ford from the basket means trouble for JLR.

Company however informs that is already looking at the overall reduction of its fleet emission by as much as 18 per cent over the next few years. Investment of £700 million is being done to develop and implement new environmental technologies including bio-fuels and hybrids, introduce new manufacturing materials and get light-weight structure for their cars.
Tata Motors says it does not come as a surprise to them and steps are being taken to meet the norms.