4 ms·
Fleet emission rules have the weird (but entirely intended!) effect that they make it economic to sell (nominally or actually) low emission cars at a loss if th
by usrusr 6y ago
Fleet emission rules have the weird (but entirely intended!) effect that they make it economic to sell (nominally or actually) low emission cars at a loss if they compensate highly profitable high-emission cars elsewhere in the portfolio.
Originally this meant that small economy cars got subsidized by expensive guzzlers, but with regulations clamping down on emissions ever harder and with the "Tesla insight" that electric cars just don't work on a budget (not just plain battery cost, also what if you don't have a convenient garage and all that), it's flipping over to electrics from the premium brand in the portfolio cross-subsidizing ICE for the less affluent (e.g. Audi electrics compensating for Seat four cylinders)