Germany’s environment minister, Sigmar Gabriel, is convinced that the automotive industry will increase its offering of low fuel consumption models in response to rising fuel prices.
Go deeper with GlobalData
Speaking on German radio, he said that pump prices will exert more influence over the industry than any political regulation.
“I think the automotive industry is currently under massive pressure, because customers naturally want vehicles that won’t penalise them at the pump,” said Gabriel. However he noted that the industry has failed to self-regulate and reduce CO2 emissions and therefore it is right that the European Union does bring in legislation.
The European Commission has proposed fleet average CO2 emissions limits of 120g/km by 2012, but the German and French governments have agreed to effectively extend this to 2015. Gabriel supports this plan as it is more in tune with the automotive industry investment cycle.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
