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Has Tesla saved Honda?
Honda needs to improve its fleet average carbon score to avoid crippling emissions fines – in comes Tesla to the rescue, as Rory explains
Words by: Dan Trent
Published on 11 May 2022 | 0 min read
Where horsepower and 0-60 acceleration times used to be the most important figures for car fans to compare the CO2 output is now, perhaps, even more crucial. Certainly, it is for manufacturers, who are being forced by regulation created by the EU (and followed by the UK) to hit increasingly strict averages across all the vehicles they sell. And if they don’t meet these numbers they get hit by massive fines.
And, on this score, Honda seems to be in a spot of bother, as Rory explains in this video. To help lower that CO2 figure to the 95g/km average demanded by the regulations car manufacturers across the board have been investing heavily in the cars that do well on this measurement. Which is to say pure electric vehicles (EVs) or plug-in hybrid vehicles (PHEVs). Governments are, meanwhile, incentivising buyers into these cars with tax breaks and other nudges to make them more financially appealing to drivers.
And, on this score, Honda seems to be in a spot of bother, as Rory explains in this video. To help lower that CO2 figure to the 95g/km average demanded by the regulations car manufacturers across the board have been investing heavily in the cars that do well on this measurement. Which is to say pure electric vehicles (EVs) or plug-in hybrid vehicles (PHEVs). Governments are, meanwhile, incentivising buyers into these cars with tax breaks and other nudges to make them more financially appealing to drivers.
The only problem? Honda only makes one EV – the E – and while most of the other cars it sells are hybrids they’re not PHEVs, so they don’t help bring that average score down. Even with fairly modest sales in Europe it could be facing fines of hundreds of millions of euros.
Enter Tesla, its zero emissions fleet meaning it is rich in ‘credits’ it can trade with other manufacturers for cash to reinvest into its own products. Or whatever else Elon Musk feels like buying. Not for the first time, either, given Tesla has already helped Alfa Romeo out in similar fashion, as Rory explored in a previous video. Can Elon do the same for Honda? And what’s in it for him? Let Rory explain all! Liked this video? Then don’t forget to subscribe to our YouTube channel for more!
Enter Tesla, its zero emissions fleet meaning it is rich in ‘credits’ it can trade with other manufacturers for cash to reinvest into its own products. Or whatever else Elon Musk feels like buying. Not for the first time, either, given Tesla has already helped Alfa Romeo out in similar fashion, as Rory explored in a previous video. Can Elon do the same for Honda? And what’s in it for him? Let Rory explain all! Liked this video? Then don’t forget to subscribe to our YouTube channel for more!
