Legacy automakers are forming alliances with electric vehicle companies to avoid EU fines on carbon emissions. Fines could have reached up to 15 billion euros by 2025 but have been adjusted to average emissions over 2025-2027. Alliance agreements are set to expire and be renewed in the coming years.

Nissan joined forces with Chinese EV giant BYD, while South Korea’s KG Mobility formed a pool with Chinese EV maker Xpeng. Tesla, Stellantis, Toyota, Ford, Leapmotor, Mazda, and Subaru created a pool in January. Mercedes, Volvo Car, Polestar, and Smart Automobile also formed a pool in January.

EVs accounted for 12% of European light vehicle sales in 2020, expected to increase to 15% this year, 24% in 2027, and 40% by the end of the decade. Automakers are making moves to meet emission requirements and avoid hefty fines.

Read more at Yahoo Finance: Factbox-Automakers pool with EV makers to avoid EU emissions fines