High NOx emissions and diesel gates are precipitating the end of the diesel era. To meet stricter regulations, carmakers will have to invest in low-emission engines, such as electric vehicles. As these will not immediately take over the entire car fleet, car manufacturers will also still have to invest in technologies to reduce emissions of fossil fuel cars. This requires scale.
- Diesel engines are bound to be phased out
- Carmakers and suppliers have to invest in new low-emission technologies
- We prefer companies with enough scale to make such investments