A bad week for Germany’s carmakers

STRENGTH and reliability were once the watchwords of Germany’s carmakers. Tardiness and scheming seem more apt terms now. Nearly two years after Volkswagen (VW) was caught rigging emissions tests, the difficulties continue to pile up. Europe is turning against diesel, and even petrol. And German firms are facing accusations of collusive behaviour, including claims of more widespread rigging of emissions tests for diesel engines.

Diesel’s days look numbered. Sales in Europe are falling fast. Before VW’s misdemeanours came to light, they accounted for over half the market in large European countries. No longer: Morgan Stanley, a bank, notes that diesel passenger cars took less than 39% of sales in Germany in June. Another bank predicts that diesel’s share will soon drop to 30% across Europe.

Dismay over premature deaths caused by pollution is one reason. The European Environment Agency says smog causes nearly half a million early deaths in Europe annually. Diesel engines…Continue reading

from Business and finance http://www.economist.com/news/business/21725583-they-should-respond-bad-news-dumping-diesel-bad-week-germanys-carmakers?fsrc=rss

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s