As European automakers roll out their latest hydrogen-fueled concept cars and plush luxury sedans at the Geneva Auto Show this week, they'll be meeting behind the scenes on Wednesday to hammer out an approach to the EU's newly proposed emissions standards, which would require average CO2 emissions reductions of at least 18 percent for all new cars sold in Europe by 2012.
Reaching consensus may not be easy. Italian and French manufacturers like Fiat and PSA Peugeot-Citroën, whose cars already skew toward fuel-efficiency, are better positioned for such a change than German manufacturers like BMW and Mercedes, whose cars tend to privilege the demands of the Autobahn over those of the environment. By an odd coincidence, Germany has been in the forefront of opposition to the new standards.
The division between the two camps is explicit. Porsche Chief Executive Wendelin Wiedeking recently told shareholders: "This is a business war in Europe ... It's the Italians and French against the German manufacturers." Peugeot chief Christian Streiff, on the other hand, says of the EU targets: "We support these goals even if they're tough."
Any sense of déjà vu you might be experiencing is understandable: while Germany's current recalcitrance isn't a round-for-round replay of Detroit's split-screen slugfest with Japanese automakers and U.S. environmental agencies, there is a certain thematic continuity. But while one also understands (without agreeing) why the Germans might see this as a fight for market share, fighting off environmental standards may not be the most productive long-term approach. Just ask the Big Three.
[Source: The Wall Street Journal (subscription required)]
