Monday, August 20, 2018

Phase 2 of Europe’s New Auto Emission Regime Causing Massive Headaches and Uncertainty for Fleets and Car Makers

Automotive News Europe

The second phase in the adoption of WLTP — the Worldwide Harmonized Light Vehicles Test Procedure for identifying auto emission levels for all new cars and trucks sold — goes into effect September 1, and it’s been causing near-chaos and the adoption of “Plan B” by fleets and OEMS as they struggle to cope with it.

The problems stem from the fact that the test is lengthier, more rigorous and is finding that vehicle emissions are considerably higher than the test it’ is replacing, the New European Driving Cycle. As of next month,  only auto models that have been WLTP-tested can be sold, more effective emission-control systems may have to be installed, raising car prices, and the higher emissions can mean higher taxes for drivers.

Faced with meeting the standards or suffer fines, OEMs have been cutting models from their lineups and may be stuck with tens of thousands of unsellable vehicles. Uncertain of what it means for them, some fleets are extending lease contracts instead of signing new ones.

“It’s like a multidimensional game of chess,” said Mark Fulthorpe, director of light vehicle production forecasting at IHS Markit. “People have not realized just what it was going to take to achieve this.”

Read the article at Automotive News Europe.

The post Phase 2 of Europe’s New Auto Emission Regime Causing Massive Headaches and Uncertainty for Fleets and Car Makers appeared first on Fleet Management Weekly.


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