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The Regulation includes a mechanism to share the burden of emissions reductions between vehicle manufacturers. Manufacturers of predominantly larger (heavier) vehicles are allowed to produce cars with higher average CO2 emissions per car than manufacturers of smaller (lighter) vehicles. The additional permitted allowance is currently the subject of intense lobbying by German producers of larger vehicles: Daimler, BMW and VW. This paper considers the issue and the implications of allowing more generous allowances for larger vehicles.