The accelerating demise of diesel, long used by car makers to boost fuel-efficiency, is undermining their plans to meet looming European Union CO2 goals, and avoid big annual fines.
Executives gathered on Tuesday at the Geneva auto show are grappling with unpalatable choices: re-engineer existing vehicles at huge expense, restrict sales of some profitable models; or risk hundreds of millions of euros in penalties.
Others are clinging to the hope that the image of the latest Euro 6 diesels may yet be rehabilitated, and their fortunes restored.
However, a fresh flurry of bad headlines and the growing prospect of outright diesel vehicle bans are already sending their sales into a steeper tailspin.
While diesels produce more toxic nitrogen oxides (NOx) and particulates than gasoline engines, their efficiency has been instrumental in cutting greenhouse gases. As consumers shun diesels, more carmakers are on track to miss tougher EU carbon dioxide goals taking effect in 2020. Reuters report.
