BMW Group opens EU regulatory CO2 pool as it struggles to narrow profitability shortfall
BMW Group has opened its EU CO2 regulatory credit pool for the first time, noting that it is comfortably exceeding its CO2 fleet reduction targets, having reached the 2025 target (90.0g/km), and is on track to meet both 2026 and 2027 as part of the EU’s current bank-and-borrowing three-year average adopted last year.
The windfall from attracting any struggling OEMs into its pool would provide an extra cash boost to the Bavarian premium manufacturer, which is struggling to achieve a positive profit margin this year and has recently adjusted its 2026 outlook, with its Chinese business weighing negatively on the business.
However, with most struggling manufacturers either already coupled to an open pool, such as Japanese OEMs with Tesla, Mercedes-Benz part of a joint Volvo Cars pool, or Porsche and Xpeng, few remaining OEMs are likely to require the services of an open pool, given the inflated BEV market in response to a wide range of returning purchase subsidies, as well as inflated demand linked to high pump prices for diesel and petrol, contributed to by the continued instability in the Persian Gulf.
BEV penetration across Western Europe, which we monitor in our monthly study, has surpassed 30% mix for the past two months consecutively, with the year set to close comfortably above 25% for the first time.
Ironically, Chinese OEMs such as SAIC, which missed their 2025 targets and have pivoted to non-BEVs to mitigate EU tariffs, with no local production expected before 2028, could be among the few remaining manufacturers still looking to join the open pool.
According to EEA data SAIC/MG failed to meet the 93.6g/km EU fleet average in 2025, reaching 97.6g/km before flexibilities.
To achieve CO2 compliance over the three-year average between 2025 and 2027, it will need to improve both its BEV and PHEV mix.
To discover more about out studies just contact us
Scope: Western Europe's 18 Markets: EU Member States prior to the 2004 enlargement, plus EFTA markets Norway, Switzerland, Iceland, plus UK – accounting for 90% of the enlarged European region.
Comments