Join our community of smart investors

Car makers revved up by lenient fuel emission rules

Under pressure car manufacturers have emerged victorious from the European Parliament's latest emission-testing rules, much to the disgruntlement of environmental campaigners
February 11, 2016

The European automotive industry has received a massive boost after lawmakers across the continent voted in favour of giving companies more leeway in reducing fuel emissions.

Under the latest proposals, the laboratory-run tests that controversially enabled Volkswagen (DE:VOW3) to cheat the system, and got Renault (FR:RNO) into hot water at the beginning of the year, will be replaced with more accurate on-road testing ones.

The final trigger for this change was the discovery that Renault's lab testing systems failed to reflect hot or very cold weather, a point discovered after French authorities raided the company's offices. Alarmingly, French energy minister Ségolène Royal admitted that several other unnamed firms had been guilty of committing similar errors.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in