VW: German car manufacturers have 50:50 likelihood of facing Detroit's fate

VW: German car manufacturers have 50:50 likelihood of facing Detroit's fate

There’s a 50% probability of surviving as major players in the automotive industry for German car makers unless they have their businesses reformed to meet new rules and adapt supply chains. That’s what Volkswagen's chief executive uncovered on Tuesday.

German car makers have already complained about fresh rules, including bans on older diesel cars in German cities as well as broader EU measures to reduce car emissions, telling that they will affect Europe's automotive industry as well as cost jobs.

Tougher regulations could push some car manufactures out of business due to the extremely high tempo of reforms needed to shift output to electric vehicles and also to respond to new geopolitical threats.

European Union lawmakers have made up their mind to seek a 35% trim in car emissions by 2030. That’s definitely a higher level than Germany had previously counted on. EU lawmakers were forced to come up with this initiative after a UN report called for radical steps to have global warming speeded down.

Germany's Audi, Mercedes, and BMW brands hold approximately 90% market share in the premium car segment. An escalating push to reduce emissions affects high horsepower cars and German brands in particular.

To reduce average fleet emissions of carbon dioxide in the European Union by nearly 30% by 2030, German car maker Volkswagen has to ramp up its share of electric cars to nearly 30% of fresh car sales.

It’s apparent that a reduction of nearly 40% CO2 fleet emissions would require about half of the new vehicles sold to be 100% electric.

The push to reduce car carbon dioxide emissions, which are the number one greenhouse gas blamed for global warming, would undoubtedly provoke a jump in CO2 pollution in Germany, considering the country's traditional dependence on generating electricity from coal.


CPI Wednesday: the Doomsday for EURUSD and GBPUSD?
CPI Wednesday: the Doomsday for EURUSD and GBPUSD?

Today, the US Inflation release at 15:30 GMT+3 will determine the further destiny of the major pairs and gold. The event is highly impactful, as the Federal Reserve will make decisions regarding further rate hikes based on it. Also, we brought you some news about XAUUSD and GBPUSD. Stay tuned!

Latest news

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

USD Gains Momentum
USD Gains Momentum

The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera