The German Finance Minister Christian Lindner is now warning that the car industry is facing a meltdown if the emission requirements are not eased.
Germany's finance minister wants to remove the tougher CO2 requirements that car brands in Europe must meet as early as January 1, 2025.
If the requirements are not eased, the European car industry faces something close to a total meltdown.
This is written by the Frankfurter Allgemeine Zeitung .
According to the newspaper, the finance minister is ready to go so far as to demand that the new CO2 requirements be removed. All because the increased requirements will lead to huge stalls for several German car manufacturers.
In fact, there are only two car manufacturers/groups that will be able to meet the new emission requirements from the EU by New Year. It is Tesla and Volvo's Chinese owner Geely. Everyone else stands at billion-dollar booths.
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The car brands' own interest organization ACEA also warns that the situation can become very chaotic and, above all, very expensive. Mostly because motorists are not buying electric cars in the number the car brands had expected.
One of the companies that could find it very difficult under the new EU regime is Volkswagen. To avoid the stalls, the brand must increase its share of electric cars from the current 9.2 percent to as much as 24.7 percent. So more than doubling.
At the same time, the group is under pressure from falling sales figures and a deeply indebted economy. In fact, Volkswagen owes a whopping DKK 3,200 billion. According to the financial director, the group has two – perhaps three – years to reverse the trend.
The crisis at Volkswagen also means that up to 30,000 employees in Germany alone risk losing their jobs. But you can also feel the pressure at BMW. The Munich company, like Volkswagen, will be allowed to emit more CO2 from 2025. Read more about it here .
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