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PA IN THE MEDIA

The coronavirus calls for compromise

PA Consulting’s Michael Schweikl, an automotive expert, is quoted in an article exploring the impact the coronavirus will have on car manufacturers and the transition to electric vehicles.

Commenting on how automotive manufacturers can respond to the crisis while attempting to meet new CO2 emission requirements set by the EU, Michael says: “Car manufacturers must change their product portfolio if they are to meet the emission requirements. Then they also need to spend more on research and development and it is very difficult to do when the employees are at home. Not least as manufacturers now also have to cut their costs.”

The article references PA research that shows the varied picture in how prepared European car manufacturers are to meet the new emission targets. For example, Fiat-Chrysler and Mazda have a long way to go, while Toyota and PSA (Peugeot, Citroen and others) are better off. In total, car manufacturers are still so far from the target that, according to PA’s study, they risk a cumulative fine of SEK 150 billion in 2021. However, Michael says that this fine may be lower, simply because manufacturers will now sell fewer cars.

He adds: “The big question is what the demand for new cars looks like when the coronavirus crisis is over. Do consumers want small cars or big cars, and do they want electric cars or do they go back to petrol cars? This will inform how manufacturers meet the CO2 targets.”

In response to claims that the coronavirus may lead to car manufacturers seeking to alter the targets, Michael concludes by stating that compromise will be key. He says: “I think the EU is trying to find a compromise. You might postpone the goals somewhat and ease the requirements in 2020 to support the industry and avoid more unemployment.”

Read the full article in Svenska Dagbladet

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

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PA Consulting Group in Sweden

Magnus Krusberg

Magnus Krusberg

Head of PA in Sweden and financial services expert

Maria Gustavsson

Maria Gustavsson

Transformation and financial services expert

Per Blom

Per Blom

Implementation, Government and public services expert

Joacim Sundell

Joacim Sundell

Digital, Transport and public sector expert

Oskar Almén

Oskar Almén

Energy and utilities expert

Peter Wardell

Peter Wardell

Digital, IT-strategy and sourcing expert

Jakob Delden

Jakob Delden

Protective security expert

Lan-Ling Fredell

Lan-Ling Fredell

Fintech and Innovation Expert

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