Auto manufacturers like Mercedes, VW, and others plan to phase out combustion engine vehicles by 2035, sparking increased competition and debate in the industry.
In the automotive industry, German carmaker Volkswagen Vz. (WKN: 766403) is feeling the heat from economic and political pressures as the debate about the future of combustion engines intensifies.
The European Union has reaffirmed its plans to transition away from combustion engines by 2035, a move that has been met with concern from politicians at the state level. Germany's Health Minister Jens Spahn, for instance, is calling for technological openness and more flexibility in fleet limits as part of a planned automotive dialogue.
However, not everyone is on board with the 2035 combustion engine ban. Lower Saxony's Minister President Olaf Lies, who holds a supervisory board seat at Volkswagen, considers the ban unrealistic and advocates for the continued use of synthetic fuels and plug-in hybrids beyond 2035. Baden-Württemberg's CDU leader Manuel Hagel and Bavaria's Minister-President Markus Söder have expressed similar views.
European carmakers are facing pressure from various sides, including economic decline and increased competition from China. This pressure is reflected in the investment decisions of financial institutions. For example, DER AKTIONÄR, a publisher known for its financial analysis, has favoured BMW and is betting on a turnaround at Porsche AG in its portfolio.
It's important to note that the publisher Börsenmedien AG, which includes DER AKTIONÄR, has a conflict of interest in this matter. The management and majority shareholder, Mr. Bernd Förtsch, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives.
The financial challenges facing European car manufacturers are significant, but the identity of the EY expert who spoke about these challenges remains undisclosed. Despite these challenges, the industry continues to evolve, and the future of transportation remains uncertain.
