Mercedes may reduce AMG line due to new eco-standardsDecember 20, 2019
New eco-standards may affect sales of “charged” Mercedes-AMGs.
According to the Financial Times, Daimler may resort to a significant reduction in the AMG line next year. This assumption is triggered by new EU environmental standards. In addition, new standards may apply to passenger cars with 3.0-liter engines.
New environmental standards for carbon dioxide emissions can seriously affect the sales of the car concern. Mercedes-AMG stocks are expected to decrease by 75%. A ban on selling cars with 3.0 liter powertrains is also likely. According to Bernstein analyst Max Warburton, “killing AMG” could entail “a catastrophic decline in the profitability of the entire car concern.”
This situation may affect the entire model line of the German brand. The corporation will rely not on productive compact and medium-sized machines, but on their less powerful variations. This step could have a negative effect on the GLE crossover, which has a 3.0-liter engine, or on the flagship E-Class.
It should be noted that the European Parliament approved the regulation 2019/631 in April this year. According to this decree, the level of CO₂ emission by 2021 should not exceed 95 grams. Moreover, for each gram that exceeds this volume, a fine of 95 euros will be provided. In turn, this amount must be multiplied by the number of cars produced.
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