Not really. A vast majority of audi's, bmw's mercedes', vw's and others are sold with a 4-cylinder 2-liter diesel engine (or less) already.
I think norway's tax is a little different, and it should be ok by eu standards since denmark has something similar. It's basically just a tax on the price of a vehicle. The scale might be progressive, I don't know. But the important thing in norway is that bev's are exempt from this tax and the 25% VAT.
Really.
Ms Merkel's stubborn refusal to go along with the rest of the EU on vehicle CO2 emission reductions argues otherwise.
Norway is not in the EU nor does it look likely to join anytime soon.
And it does have a tax based on engine size,number of cylinders, and horsepower. And it also has a tax on the car's weight. And automotive tax and VAT exemptions for BEVs and FCEVs.
This makes a BMW 760Li $325k and a Tesla P85D $100k in Norway vs $105k for the Tesla and $141k for the BMW in the USA.
A disproportionate amount of profits are made at the high end. With V6, I6,V8 and V12 engines.
Not talking about VW's mass market vehicles.
You target profits not volume that is where change comes.
No need to target average blokes already buying relatively fuel efficient cars given what they can afford.
Historically Volvo operated in a space between mass market and premium.
But seems Geely wants to move them up market.
And Volvo has already made the strategic decision not to build ICE bigger than 4 cyl 2.0 litre.
With a progressive tax on CO2 not only does it make Volvo's more efficient premium ICE cars more attractive in the market place but PHEVs and BEVs as well.