Posted originally on CTH on October 21, 2025 | Sundance |

Put this in the ‘beyond ridiculous’ file that explains the current situation of a contracting European economy; specifically, in the auto sector.

Europe has fines associated with the production of gasoline powered engines if the auto company doesn’t hit targets for sales of electric vehicles.  The fines triggered this year.  In order to avoid paying the European fines the auto makers are forming alliances with Chinese EV makers to purchase carbon credit offsets.

In essence, EU car companies buy Chinese car company carbon credits, to avoid the EU fines.  The Chinese car companies can then use the carbon credit revenue to subsidize lower priced Chinese EVs to the European car market, thereby undercutting the European EV car companies.  BRILLIANT!

MILAN, Oct 21 (Reuters) – Automakers have formed alliances to help them avoid hefty European Union fines on carbon emissions by purchasing credits from electric vehicle companies. Several legacy automakers face potential fines as the transition to EVs in Europe has proved slower than expected in recent years.

EU fines – which automakers have said could reach up to 15 billion euros ($17.5 billion) – were initially envisaged on 2025 carbon emission levels. In March, however, the European Commission yielded to pressure from automakers and allowed compliance based on their average emissions over 2025-2027. (read more)

Nissan is purchasing carbon credits from China’s BYD (Build Your Dream). South Korea is purchasing from Xping. Mercedes and Volvo are purchasing carbon credits from Chinese automaker Geely.

BYD and Geely are selling super cheap EVs into the entire EU car market.  lol  You can’t make this stuff up.

The EU economic offset plan?  Let’s go to war with Russia.

Brilliant!