Tuesday, 6 October 2015

F&S: VW pushes back diesel technology "by years"

 Frost & Sullivan claims that Volkswagen's concession of corporate wrongdoing in circumventing EPA (Environmental Protection Agency) testing in the U.S. has sent the global automotive industry into a tail spin and substantially pushed back developments in clean diesel technology and internal combustion engines (ICE) by years.
The immediate impact of this crisis goes beyond Volkswagen and the U.S. reaching OEMs, many component suppliers, dealerships, regulatory authorities and testing agencies.

Frost & Sullivan (F&S) proposes the following eight strategies Volkswagen can utilise to regain consumer trust, fuel sales volumes and develop sustainable revenue growth opportunities: Focus on emerging markets; Position hybrid and electric powertrain as priorities; Focus on passenger safety; Position the company as a pioneer in sustainable mobility  and synthetic fuels; Treat connected cars as a basic and major focal point; Bring Audi, Porsche, and other brands to the fore; Increase focus of commercial vehicle business; and Conduct rigorous voluntary emission testing and certification

“The Volkswagen crisis could have far-reaching implications for the future of diesel powertrain, resulting in even more stringent regulations and higher investment costs,” said Frost & Sullivan Automotive & Transportation senior research aanalyst Arun Chandranath. “Costs for carmakers to comply with emissions requirements could rise and consumers could be turned off by diesel cars.”

The automotive industry was prepared for an anti-diesel sentiment with the shift in new technologies making them more efficient and environmentally friendly than some gasoline vehicles, notes Frost & Sullivan. Auto regulators have been more focused on climate change and greenhouse emissions than concern for public health and air quality.

Regulators are under immense pressure to ensure higher standards and to restore credibility, F&S adds.

“Recovery will not be easy for the world’s largest auto manufacturer, however transparency and communication is essential for Volkswagen to win back the market and consumer trust,” concludes Chandranath. “Volkswagen’s recovery is critical for the overall health of the automotive industry.  Currently, Volkswagen is standing trial, but everyone’s future is at stake.”

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