Ford has entered into a pooling agreement with Volvo Car Corporation as a way to avoid any potential fines for missing EU emissions targets.
Volvo has agreed to sell Ford CO2 credits using the pooling system put into place by the European Commission.
It comes as the Swedish firm announces that it and affiliate Polestar will have reduced their own fleet emissions beyond their joint CO2 target for 2020. As a result, the wider Volvo Car Corporation has spare CO2 credits to sell to other manufacturers which are finding it difficult to reach emissions rules.
Any revenue made from the new deal with Ford will then be ‘reinvested in new green technology projects’, according to Volvo.
Håkan Samuelsson, chief executive of Volvo Car Group, said: “For Volvo Car Group, the future is electric and we are transforming our company through concrete action,”
“I am pleased to see that we are exceeding our CO2 reduction targets. It proves our strategy is the right one for our business and for the planet.”
Volvo has electrified nearly all of its line-up and is now the only carmaker to offer a plug-in hybrid version of every car it has on sale currently. It is working towards the goal of having 50 per cent of its global sales as electric vehicles by 2025 and aims to be carbon-neutral as a company by 2040.