Tag Green

Rusty old dumping ground

Await the Chinese backlash

The latest European passenger vehicle emissions standard (“Euro5”) was introduced in September 2009. Since that date, in Europe it has been illegal to sell new vehicles that do not meet this standard. Older models that only met the Euro4 standard can only be exported outside Europe to markets with more lenient standards. Within Europe the cars have little value – they can only be disassembled in order to reuse the components – and this value is therefore below cost.

This situation alone raises the possibility that dominant carmakers in the other markets will already be very suspicious of Euro4-compliant automakers. But it can get worse, much worse. Imagine that Read more

What electric car tipping point?

Doctor Z, want to borrow my spectacles?

Dr Dieter Zetsche, CEO of Daimler AG (that produces Mercedes-Benz and Smart) is reported in Automotive News to have said of electric cars being on the immediate horizon that “we are at that tipping point now.”

Really? I disagree for several reasons. Read more

Here comes the “Nano Tax”

“First car for the second world family, second car for the first world family”

The Tata Nano is likely to change the lives of an immense number of families in the developing world, with the possibility that the Indian car market will increase by 65%, according to Standard and Poor’s Indian arm, CRISIL (source India Times). And much has been written about Ratan Tata’s dream of migrating Indian families from two wheels to four.

But how about the developed world? I believe that it will be disruptive here too – by fundamentally altering the tax applied to private vehicles. Read more

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