Report: Climate Change vs. Carmakers
Report: Automotive headwinds align into a perfect storm
The new average fleet targets that came into force in Europe on January 1st 2020 are having big impacts on vehicle development and technology, pushing OEMs to produce and sell more hybrids and EVs. But the rules are complex and varied by brands, volume and sales. Here we provide a summary of the key rules and terminology.
If carmakers’ vehicle fleets in the EU are not able to meet the new targets of 95 grams of CO2 per kilometre starting from this year, many will face stiff fines that could run into the billions of euros. That would take a painful bite out of already thinning margins across the sector both for carmakers and automotive suppliers.
OEMs have been preparing for the stricter targets for years, which will be the strictest in the world. Many have launched new hybrids, plug-in hybrid and battery electric vehicles to coincide with them. However, emissions data will be based upon actual registrations, not production – and there is simply no guarantee that consumers will purchase these models.
What executives need to know to understand the rules? The regulations and terminology are not always easy to understand, but here is a useful explainer of key terms, as well as who is likely to be most affected.
We answer questions including:
How will the EU apply CO2 rules and targets?
How much will OEMs pay in fines?
How will CO2 rules be phased in?
How can OEMs pool or group their vehicles?
What are the exemptions and exceptions?
How will Brexit impact the regulations?
Who will be the winners and losers?
To continue reading this article and others like it, please SIGN-IN or REGISTER FREE today.
Register free now to stay up-to-date with the latest industry developments, trends, and analysis, to find in-depth reports and intelligence and to connect with your peers.
Your free registration includes:
Gain access to our exclusive content and features register today
Non-registered users are able to access two AIT exclusive articles per week. You have now used your allocation.
To continue reading this article and others like it, please SIGN-IN or REGISTER FREE today.
A squeeze on automotive suppliers, together with the adaptation of new technology, will lead some major players to play a bigger role in overall vehicle development cycles, especially in shaping customer user experiences
As OEMs and automotive parts suppliers see their margins decline, cost pressures are going to increase on logistics operations and service providers further down the supply chain
As OEMs look to reduce production costs and manage more complexity, automotive suppliers will face challenges. But with more EV models in the pipeline, many have the opportunity to grab a larger piece of the pie both for manufacturing and supply chain management.
Automotive tier 1 suppliers are facing unprecedented industry transformation in electrification along with economic uncertainty. Download this report on the top 20 global suppliers for a deep analysis of their historic margins, as well as solutions for how suppliers could cope with growing pressures and changes in technology across the supply chain
Download this report for forecasts of eight different powertrains across major regions, including hybridisation, electrification and internal combustion engines, which reveal changes that will have huge implications for automotive technology and IT. The latest insight by the business intelligence unit of Automotive from Ultima Media
In our second report from Ultima Media’s automotive business intelligence team, we focus on climate change mitigation policies around the world with a particular focus on the most stringent and imminent EU CO2 emissions targets predicting the financial consequences of the legislation upon the OEMs, the impact upon the wider supply chain and the opportunities that arise from the legislation.
