Any takers?
From next year EU-based carmakers will be hit with monster fines if, or far more likely when, they fail to sell enough ‘low emission’ vehicles to a public that has an increasing taste for SUV models but lacks interest in electric power.
European car makers complain they are being crippled by controversial EU emissions rules, rising US tariffs and uncertainty about UK leaving the bloc, says the South China Morning Post.
The Geneva Motor Show kicks off this week with carmakers eager to show off new electric models, even as they nervously eye a horizon coloured by trade wars and Brexit uncertainty.
After years of growth and record profits, the sector took a sharp U-turn in mid-2018 amid an unexpected slowdown in China, which is by far the world’s biggest market, counting one out of three registered cars on the planet.
With just over three weeks to go before Britain is supposed to leave the European Union on March 29, carmakers are bracing for the possibility of a “no-deal Brexit”, which is expected to spell cataclysm for the industry.
The carmakers heading for Europe’s biggest annual car show, which opens on March 7, are suffering from the ongoing trade war between Washington and Beijing and wary about increased tariffs the US might slap on European imports.
Carmakers are also being pushed to pump huge investments into electrifying their fleets because of the EU’s controversial CO2 emissions standards.
Manufacturers of cars and auto equipment “will see slim profits in 2019”, said Ferdinand Dudenhoeffer, who heads the Centre for Automotive Research (CAR) in Germany.
“We can already expect profit warnings, production reductions and job cuts,” he said. “This is not a good climate for a show filled with glitz and glamour.”
Full report here.
via Tallbloke’s Talkshop
March 3, 2019 at 09:39AM
Iowa Climate Science Education 