VW and PSA may stop producing their smallest cars in EuropeFebruary 10, 2019
Profit in the urban babies segment continues to decline. All the fault is in particular the existing environmental standards, according to which cars should reduce the level of emissions of harmful substances into the atmosphere.
Miniature cars were the main vehicle segment, especially in Europe, where it accounted for 8% of the total share of the automotive market in 2017. However, the situation is changing as it becomes more difficult for manufacturers to make a profit from the sale of such babies, mainly due to more stringent emission rules.
Journalists from the overseas edition of Automotive News Europe reported that the German Volkswagen Group and the French PSA Group car concerns expressed concern over the near future of the mini-car segment.
The general director of the Volkswagen Group, Herbert Diss, complained about stricter regulations on emissions of harmful substances into the atmosphere, which should be adopted in 2020. To fully comply with the rules of 2030, the price tag of a miniature model up! should increase by about 3,500 euros. This is considering the fact that right now, up! Sells for at least 11,000 euros. “I’m not sure that our customers will be able to afford our models after this increase,” said Diss.
As for the PSA Group, there are concerns that the production of its minicars will stop at a joint plant with Toyota in the Czech Republic. It is assumed that by 2021, Toyota will acquire the specified factory, which is said to force PSA Group to completely withdraw from the segment, stopping the production of its small cars, such as the Peugeot 108 and Citroen C1.
Not so long ago, we wrote that the VW brand introduced an updated Passat for Europe.
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