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Europe's tough emissions rules come with $39 billion threat

PA Consulting’s Michael Schweikl, automotive expert, discusses Europe’s emission rules.

Read the full Bloomberg article here

The article notes that carmakers in Europe are just six months out from stiff new emissions rules. The industry is facing up to an estimated 34 billion euros 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.

Michael says: “It’s not quite an existential problem yet, but there are going to be questions of how do you explain to shareholders that I’m losing so much money, and it’s going to create immense pressure.”

Driving into a low emissions future: How can car makers look beyond 2021

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