Europe’s largest carmakers face a €7.4bn hit to profits from the costs of meeting the EU’s CO2 regulations, UBS warned on Wednesday, as it cautioned the implications of the bloc’s emissions rules were being underestimated.
In order to meet European targets of 95 grams CO2 per kilometer by 2021, carmakers will have to reduce emissions by around a fifth in just two years, the report said.
“All European carmakers are still well above where they need to be in 2021,” wrote analyst Patrick Hummel.
Complying with regulations will knock earnings before interest by around €7.4bn across the industry, with Peugeot expected to take the biggest hit, at around 25 percent of earnings per share, because of its high EU focus, followed by Fiat Chrysler at 20 percent and Volkswagen at 13 percent.
h/t GWPF
Read more at Financial Times
“Go along to get along.”
Famous last words
Industry has been playing nice with the Devil for too long. Time for an exorcism.
Carbon dioxide feeds the planet.
Just say it. From the roof tops.
If I understand the article correctly, “Peugeot expected to take the biggest hit, at around 25 percent of earnings per share, because of its high EU focus” mean that European auto makers don’t apply the same standards to car sold else where. This is something that the US automakers could learn. If they want to make cars that follow California emission standards then they shouldn’t make all car for the US do so. For states not going along with California, they should sell cars with different emissions.
David, this was debated by the Big Three back in the 70’s. The bean counters had a lot of influence in the decision to build cars to national specifications.
New York said that they deserved “cleaner” cars, too. Others chimed in.
What if Texans couldn’t drive their vehicles across state lines?
Extrapolate from that scenario .
The auto sector is retrenching as demographics and debt take hold . Does that sound like an industry willingly going to blow another $8 billion from their bottom line . Nah , reality is landing . Punt ….