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July 21, 2017

German Auto Industry Seeks Reduced Car Emissions to Avoid Bans

Germany’s car manufacturers expect to avoid proposed bans in cities by negotiating with the government on a deal about reducing emissions for older diesel cars.

The bans have led people to buy other vehicles instead of older diesel-powered cars from dealers like Bavarian Motor Cars. The agreement may include BMW Military Sales in Germany. Auto manufacturers and the government will end talks on a potential agreement during a scheduled meeting on August 2, following an announcement of the plan in the last week of June.

City Ban

The proposed ban stems from mounting calls to reduce carbon emissions from diesel vehicles in cities. If local officials fail to do so, German courts may order cities to implement restrictions for such cars. VDA head Matthias Wissmann expects the negotiations to steer the proposed bans from taking place.

Ever since the prospect of imposing bans emerged, Wissmann said that uncertainty has shrouded the business of selling diesel cars. As diesel vehicles account for over 40% of sold cars in the country, the threat of bans would have a significantly negative impact.

Car Sales

VDA reported that new car sales in Germany fell 3% to 327,800 vehicles in June. By contrast, year-to-date registrations rose 3% year over year to 1.79 million vehicles. The auto industry group anticipates vehicle manufacturing in Germany and export trade to decline to 5.6 million and 4.3 million units, respectively, down 2% each.

These figures may represent the least of VDA’s concerns, as Wissmann noted that the diesel cars had captured a smaller share of the market, despite being more ecological than gasoline vehicles. Diesel cars emit 15% less emissions than their gasoline counterparts, which is why Germany will need diesel autos for a long time to achieve its target carbon emissions, he added.

Conclusion

The Germany auto industry’s negotiations with the government signal their willingness to prevent any negative effects on business, especially since companies recently sold fewer cars.