Will Volkswagen Scandal Gives Electric Car a Positive Impact?

With the emissions fixing scandal unveiled, it is surely to have a huge impact to the company’s reputation and future development. It is reported that the company has set aside about €6.5bn to cover the costs of affair but unfortunately it could mount into tens of billions of Euros with the recall costs, brand damage, lost sales, fines and the possibility of law suits.

Apparently, it could get even worse as there seems to be a wider impact to the automotive industry. One of them might be the city mayors and governments possibility to restrict the usage of diesels in polluted cities as seen in Paris. Paris plans to ban diesel cars starting from 2020. Another example is London which sets up ultra-low emissions zone to ban the dirtiest diesels driving through the city centre. With these two examples, it is expected that more and more cities might follow.

Another impact is that the emission testing and fuel efficiency by regulators could be tougher compared to the previous requirements as they need to reflect as close as possible to the real world situation.  Diesel-powered cars might be required to install systems which are able to clean up their own waste emissions which in turn make diesel-powered cars to be more expensive to produce and as the result lesser people will want to buy it.

As emissions from the car could also impact the global climate change, it seems like would be a better alternative to use after all.

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