New environmental regulations will be expensive for carmakers

New environmental regulations will be expensive for carmakers

April 8, 2019 0 By autotimesnews

According to preliminary studies by experts of UBS AG, the concerns of the concern will not receive a profit of 7.4 billion euros as a result of the introduction of new standards for carbon dioxide emissions by the European Union.

Each time, environmental regulations are becoming more stringent. Previously, companies had to constantly improve the power units, as well as the ability to clean the exhaust gases. Now, most brands focus on the electrification of their own cars. This helps to comply with eco-feeds, but the share of these cars is still very small.

As reported by “Finmarket” agency, already in 2021 all new cars will have to correspond to the level of 95 grams of CO2 per kilometer. To date, no European company meets the required standards. Automakers will have to improve the environmental friendliness of their cars by about 20%.

According to experts from UBS AG, Peugeot will suffer the biggest losses, which could lose up to 25% of earnings per share. In second place will be Fiat Chrysler with a loss of profit of 20%. Concern Volkswagen will not suffer so seriously, but will lose about 13%, and Renault will lose about 10%.