Photo: Michael Gaida on Pixabay
Diesel engines, particularly in passenger cars, have come under very careful scrutiny after Volkswagen's defeat device was uncovered, and it doesn't look like they'll ever be able to recover their lost glory.
It was mostly the European market which drove the rise of the diesel engines in small cars, but even there oil-burner sales have been dropping after years and years of positive trends. Now, a decision by a German court could add another nail in diesel's coffin, and we can't see anyone shedding any tears apart from the carmakers that are still heavily reliant on it.
This Thursday, a court decision will be made on whether German cities are allowed to ban the access of heavily polluting vehicles within their boundaries, a move that could affect millions of cars currently on the road.
Germany may not be known as one of the most polluted countries in the world, but according to local environmental groups, at least 90 of its cities exceed the EU-admitted level of particulates and nitrous oxides in the atmosphere, with diesel engines bearing a large part of the blame.
The decision comes after local courts had already ruled in favor of banning diesel cars that didn't adhere to Euro 5 and Euro 6 emission standards on days when pollution was particularly bad. The states where carmakers and their suppliers have a strong influence appealed, forcing another resolution that should be final.
Car manufacturers fear that it would bring a drop in the resale value of diesel cars, which in turn would affect the costs of leasing contracts since they are calculated on estimated residual values. According to Evercore ISI cited by Automotive News, a five percent drop in diesel residual values would result in a $2 billion loss in operating profit for eight European and U.S. carmakers.
The stakes are definitely high, but ultimately it's a fight between corporations and the right of municipalities to take measures to improve the air quality for their residents. There's no question who has more lobbying power, but should the ruling go against the carmakers, we could be witnessing another very important moment in the downfall of the diesel engine.
This Thursday, a court decision will be made on whether German cities are allowed to ban the access of heavily polluting vehicles within their boundaries, a move that could affect millions of cars currently on the road.
Germany may not be known as one of the most polluted countries in the world, but according to local environmental groups, at least 90 of its cities exceed the EU-admitted level of particulates and nitrous oxides in the atmosphere, with diesel engines bearing a large part of the blame.
The decision comes after local courts had already ruled in favor of banning diesel cars that didn't adhere to Euro 5 and Euro 6 emission standards on days when pollution was particularly bad. The states where carmakers and their suppliers have a strong influence appealed, forcing another resolution that should be final.
Car manufacturers fear that it would bring a drop in the resale value of diesel cars, which in turn would affect the costs of leasing contracts since they are calculated on estimated residual values. According to Evercore ISI cited by Automotive News, a five percent drop in diesel residual values would result in a $2 billion loss in operating profit for eight European and U.S. carmakers.
The stakes are definitely high, but ultimately it's a fight between corporations and the right of municipalities to take measures to improve the air quality for their residents. There's no question who has more lobbying power, but should the ruling go against the carmakers, we could be witnessing another very important moment in the downfall of the diesel engine.
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