VW: New CO2 Standards Will Hike EV Sales Targets

New standards that would require European carmakers to lower carbon dioxide emissions 37.5% by 2030 instead of 30% will mean a faster rollout of electrified vehicles, says Volkswagen Group CEO Herbert Diess.

VW had been planning to spend €30 billion ($34.2 billion) over the next five years to electrify enough cars to meet the 30% target. But Diess says the new COrule approved on Monday by the European Union means that VW’s schedule “is not yet sufficient.”

He says adjusting to the tougher target will mean further changes to the company’s product lineup—perhaps including fewer piston-powered models, access to more battery capacity and a “significant adjustment” to factory production plans and equipment.

VW will review its product strategy next autumn, Diess says. By then it should be clearer whether the new 30% target for CO2 reduction is headed for approval by the EU’s 28 member states.