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24 September 2015
Shares in BMW (BWM) are weak again today on speculation that its diesel emissions test results may also have been doctored to appear eco-friendly and thus saleable in the world’s second largest but arguably the most important car market; the US. While this adds to this week’s VWgate revelation, confirmation of yet another major carmaker having potentially been ‘at it’ will hardly come as a surprise for such a highly competitive industry. As more details emerge about the extent to which VW, BMW and likely others may have gone to pull the wool over regulators’ and of course the public’s eyes, it begs the question of how ‘polluted’ the industry will turn out to be. Claimed MPG figures have been pie-in-the-sky for years and electric cars whilst “clean” in the emissions sense remain suspiciously/prohibitively expensive and poor ranging. On the flip-side, with Germany so important within the context of Eurozone growth, the car industry so important to Germany (VW, Audi, Mercedes, BMW), and the Car so important to the US consumer, how long might global regulators have been looking the other way? Is a rather expensive game finally up?
Mike van Dulken, Head of Research
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