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Auto industry seen consolidating as falling demand, higher costs bite – Source Reuters Tech News

BRUSSELS (Reuters) – The auto industry faces further consolidation and jobs will migrate to lower-cost countries as companies struggle to develop cleaner vehicles in an economic downturn, European Auto Industry (ACEA) President Mike Manley said on Wednesday.

FILE PHOTO: A Volkswagen logo is seen at a construction completion event of SAIC Volkswagen MEB electric vehicle plant in Shanghai, China November 8, 2019. REUTERS/Aly Song/File Photo

Tighter emission rules introduced in the wake of Volkswagen’s (VOWG_p.DE) diesel pollution cheating scandal are forcing carmakers to cut average fleet emissions of carbon dioxide to 95 grams per kilometer in 2021, from an average 118.5 grams per kilometer in 2017.

The investments in low-emission powertrains are being made at a time when European passenger car sales are set to drop by 2% this year after six consecutive years of growth, so carmakers will have to cut cost to offset the expense, Manley told reporters in Brussels.

“There will be a…

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Source Reuters Tech News

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