> so the little Jimny is emitting 146g/km but somehow there is no problem to buy a G-Class that is emitting 358g/km
This is an example of a manufacturer discontinuing a more efficient vehicle while continuing to sell a larger vehicle that is significantly less efficient.
That's the opposite of what you want. So, no, this is not an example of regulation working well.
To meet the overall tougher targets (95g/km average) Suzuki is discontinuing certain models which release higher levels of CO2 to reduce their average. This is presumably the intention of the regulation - to drive manufacturer behaviour.
Mercedes is, OOTH, pooling with other manufacturers who presumably have emissions to spare, and likely paying them royally for it[0]. They're not alone in this approach, but some would argue it's against the spirit of the regulation, even if it ultimately complies with the letter.
[0] https://www.motor1.com/news/747225/tesla-earns-1billion-sell... - note that Tesla doesn't pool with Mercedes; this is just an example of the value
Maybe I misunderstood. Could you explain your idea in more detail?