Entering text into the input field will update the search result below

Auto/truck makers face long-term hurdles as emission standards ratchet up

Dec. 29, 2019 4:46 PM ETF, GM, TM, HMC, TSLA, DNFGY, GNZUF, GWLLF, BCCMY, VWAGY, NIOBy: Douglas W. House, SA News Editor162 Comments
  • Auto and light truck industry investors won't have much to cheer about in the near/medium term as more stringent emissions standards take effect in Europe this week (phase-in period extends into 2021), a development long known, though.
  • In order to meet the new rules, manufacturers will have to sell many more hybrid and electric vehicles there or pay costly fines, a situation similar to China, the world's largest car market. The problem for investors is the lack of profitability since manufacturers are stuck between a rock and a hard place, environmentally friendly products will not sell if priced above gas-users but offer little or no margins if priced competitively.
  • The issue will eventually ensnare heavy-duty trucks, albeit with a longer timeline, although new fuel-efficiency rules will be implemented in the U.S. in 2021. In Europe, big trucks will have to emit 30% less greenhouse gases by 2030.

Recommended For You