Europe’s Divorce From Diesel Is About to Get Messy
- Shift to cut German carmakers’ profit by 5%, JPMorgan says
- Mercedes, Audi seen benefiting with longer-range electric cars
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Diesel engines are set to lose their dominance in Europe as Volkswagen AG’s emissions cheating raises doubts about the technology’s advantages.
Demand for diesel cars is likely to plunge to some 30 percent of the region’s total auto sales by 2020 from about half currently, hampering manufacturers’ profit growth while speeding up a push to develop battery-powered models, analysts including Jose Asumendi at JPMorgan Chase & Co. said Monday in a report.