A growing understanding in the car industry of the value of combustion engine technology able to meet new anti-pollution requirements is likely to fuel a wave of consolidation in the next two years, industry executives and bankers say.
Volkswagen and Fiat Chrysler could face penalties of up to 1.83 billion euros (1.64 billion pounds) and 746 million euros respectively, if they fail to meet the European Union’s emissions targets set for 2021, according to AlixPartners.
Car giant Volkswagen’s talks on co-operation with United States (US)-based Ford concerning electric vehicles and automated driving are “close to completion”, the German company’s chief executive Herbert Diess said Thursday.
Sales of higher-margin sports utility vehicles and cost cuts helped Volkswagen shrug off a 1 billion euro legal charge to meet first-quarter operating profit forecasts on Thursday, sending its shares 4.5% higher.
Volkswagen will buy $56.57 billion worth of battery cells for electric cars and has identified South Korea’s SKI, LG Chem and Samsung SDI as strategic battery cell suppliers.