“Management is serious”… Renault Samsung and Ssangyong Motors’bomb’ for 80 billion won in greenhouse gas penalty

Input 2021.02.15 18:41

Renault Samsung and Renault Samsung, which faced serious business difficulties as the government proposed higher-than-expected standards Ssangyong Motor (003620)Is in danger of paying a fine of tens of billions of dollars. There are concerns in the industry that government environmental regulations are excessive.

According to the performance of the “2012-2019 automobile GHG management system” released by the Ministry of Environment on the 15th, the places that did not meet the GHG emission standards in 2019 were Kia, Mercedes-Benz, BMW, Audi Volkswagen, and Honda. 12 companies including Ford, Volvo, Cadillac, Porsche, Renault Samsung, Ssangyong, and FCA. Among these, Renault Samsung, Ssangyong, and FCA are expected to impose a total fine of 80 billion won, even if they carry over past excess achievements.

The automobile greenhouse gas management system sets the amount of greenhouse gases that vehicles can emit annually, and a penalty is imposed on vehicle companies that emit more greenhouse gases as the number of vehicles sold. It was prepared to induce production and sales of vehicles with low greenhouse gas emissions, targeting passenger cars and vans with less than 15 passengers and small cargo less than 3.5 tons.

In 2016, five years ago, this standard was 127g/㎞, but it was reinforced to 110g/㎞ in 2019 and 97g/㎞ last year. Until 2018, most manufacturers met the standards, but in 2019, 12 out of 19 companies did not meet the standards.

In this performance announcement, companies that were subject to fines for the first time since the system was implemented in 2012 were identified. The three companies Renault Samsung, Ssangyong, and FCA have paid a total of 86.8 billion won. Renault Samsung is the largest with 39.3 billion won, Ssangyong Motors 38.9 billion won, and FCA 2.4 billion won.

Last year’s results will be released next month. The Ministry of Environment plans to step up the emission standard this year to 97g/km, 89g/km in 2025, and 70g/km in 2030. In particular, unlike the current system, which calculates a penalty of 30,000 won per vehicle sold to meet the shortage, the penalty is expected to increase significantly from this year by applying 50,000 won per vehicle.

The Ministry of Environment predicted that if the strengthening standards were applied, the proportion of eco-friendly vehicles such as electric and hydrogen vehicles would increase. However, it is pointed out that the burden on GM Korea, Renault Samsung, and Ssangyong Motors, whose management situation is not right now, will increase. However, the actual penalty is limited to 1% of sales.