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.


Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

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