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EU Market Situation and Outlook

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...Volvo's biggest engine is a 4 cylinder 2.0 litre.

Sweden can commence a gas guzzler tax for any engine with more than 4 cylinders and a separate gas guzzler tax for any engine bigger than 2.0 litre.

That protects Volvo from BMW,Mercedes,Audi et al and gives electrics more room to run too.

This would be quite clearly a market restriction that's illegal under EU law. Others (France) have tried such tricks in the past and they had to rescind the regulation.
 
This would be quite clearly a market restriction that's illegal under EU law. Others (France) have tried such tricks in the past and they had to rescind the regulation.

I guess Norway's taxes are an example of of the benefits of being outside the EU.

The Netherlands has a progressive CO2 taxation policy that is brutal on fuel inefficient cars.

I am sure then Sweden can do something similar where small 4 cylinder engines largely escape the progessive CO2 tax while 2.5 litre and bigger 6,8,12 cylinder engines pay an ever larger tax.

The price difference between Volvo and non-Swedish competition would increase in Volvo's favor.

And between BEV and ICEv.
 
I guess Norway's taxes are an example of of the benefits of being outside the EU.

The Netherlands has a progressive CO2 taxation policy that is brutal on fuel inefficient cars.

I am sure then Sweden can do something similar where small 4 cylinder engines largely escape the progessive CO2 tax while 2.5 litre and bigger 6,8,12 cylinder engines pay an ever larger tax.

The price difference between Volvo and non-Swedish competition would increase in Volvo's favor.

And between BEV and ICEv.
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.
 
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.
 
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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.
The factors taxed in Norway are:

- Weight (hybrids and plug-in hybrids get a deduction to the weight, to compensate for the added weight of the hybrid drivetrain)
- Horsepower (electric horsepower are exempt on hybrids and plug-in hybrids)
- CO2 emissions (NEDC rated)
- NOX emissions (NEDC rated)
- Purchase price (25% VAT)

I don't believe it's allowed under EU or EFTA regulation to tax specific technologies. Our incentives for electric cars are general for all "zero-emission vehicles", which also includes FCVs. Though we do have some incentives for hybrids and plug-in hybrids - I'm not sure how they are worded.
 
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@maoing here is what I have so far for Feb:
Capture.PNG
 
You can only judge full quarters for European sales numbers, it's as simple as that. You might want to compare with 2014 : we had 876 sales for the first two months then and we are at 949 right now and there are still some countries missing. 2500 deliveries in the quarter for Europe seems conservative with the flood of P85D models this month. Anything above this number may start to contribute to a beat on the deliveries this quarter (5000 US/2500 EU/2000 elsewhere).
 
Oh, I can hear the bears now, "Tesla sales in Germany halved" "Tesla hangs on in Europe only with Norway's subsidies"
Were there any P85D deliveries in Germany in February?

A bunch of the cars delivered in February here in Norway were P85Ds, but an unsynchronized rollout can cause some odd variations.

And March is again shaping up to be a good month here. By the end of tuesday, the number of registered Model S in March had reached 85. If this rate continues to the end of the month we'll be looking at around 1000 deliveries.