associate sponsors


Volkswagen's labour boss says EU C02 rules could ruin profits

Volkswagen's labour boss says EU C02 rules could ruin profits

STUTTGART (Reuters) - Volkswagen's labour chief Bernd Osterloh said the German carmaker needed to sell 1 million electric cars by 2025 to comply with proposed European Union anti-pollution rules, a step which may ruin profits.

European lawmakers will vote on tightening emissions rules in July to help the bloc cut overall greenhouse gas emissions by at least 40 percent below 1990 levels by 2030.

"Of course the auto industry has some homework to do - but if the infrastructure is not there, then it is difficult to convince a person to buy an electric car," Osterloh told the Stuttgart Press club.

Carmakers say governments need to help subsidise the roll out of essential infrastructure, such as charging points on streets and in homes, to help make the vehicles popular.

Osterloh, who spoke on Wednesday, said the industry would struggle if electric cars did not gain traction with consumers given the investment companies were having to make to develop the new vehicles.

He said without sufficient demand from consumers, carmakers faced a choice between paying fines for exceeding carbon dioxide limits or encouraging sales with knock-down prices too low to earn a profit. "Once prices are ruined, we will never get them back up," Osterloh said.

(Reporting by Ilona Wissenbach; Writing by Edward Taylor; Editing by Edmund Blair)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Jun 29, 2018 00:05 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See