Almost every manufacturer have 2 liter disel models that (just) barely come in under 120g/km, including several VW models such as the Passat. So while a slight increase in fuel consumption might not be much, it could be a huge blow to european sales: if a Passat jumps just a tiny bit in consumptions, CO2 emissions are likely to stray above 120g/km meaning sales will effectively be cut in half (assuming half the buyers of new cars are those who need to get under 120g/km)
To illustrate how tight the margins are, the current model of Volvo V70 with the 2 liter "D4" diesel has offer a special 120g version with 16" wheels in because the standard 17" wheels would be an inch wider, and the resulting increase in drag makes the CO2 emission value 121g/km!