Hyperdrive
Europe's Tough Emissions Rules Come With $39 Billion Threat
- Top carmakers aren’t on track to meet EU’s stiffer CO2 targets
- Shift to electric vehicles expected to erode industry profits
Mercedes-Benz GLE 63 AMG
Photographer: Michael Nagle/Bloomberg
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Time is running out for carmakers in Europe. Just six months out from stiff new emissions rules, the industry is facing up to an estimated 34 billion euros ($39 billion) in penalties as well as eroding profits from selling more electric cars.
Starting in 2020, car fleets in Europe will need to meet more stringent regulations on how much carbon dioxide they’re allowed to release. The industry is ill prepared for the looming change, and the huge fines pending for subverting the new rules could prompt some brands to abandon the European market and test the mettle of those that remain.