The fun police, also known as European regulators, are causing sleepless nights for that continent’s automobile manufacturers, all thanks to their imposition of ultra-stringent Euro 6 emissions standards.
You’ve already read about Mazda cutting back on 2.0-liter MX-5 sales in the UK to lessen the brand’s fleetwide emissions output. Now, Mercedes-Benz’s performance arm might have to cull a great number of AMG-badged vehicles to keep itself in good standing.
According to a report in the Financial Times (via Autocar), Mercedes-AMG might have to drop three-quarters of its European lineup in order to conform to the rigid environmental mandate, which come into effect in 2020.
While the automaker disputes this claim, the AMG lineup does contain a generous amount of gas-derived horsepower, to put it mildly, and with that extra oomph comes increased tailpipe emissions. Bernstein analyst Max Warburton told the paper that such a lineup reduction would be a “catastrophe for profitability,” estimating that Mercedes-Benz would potentially face a fine of $21 billion in 2021 if it continued selling the same product mix as last year.
The AMG division is a cash cow for M-B, especially in light of falling Western auto sales. With an engine swap and an upgrading of brakes and suspension, the automaker can turn a regular model into a much higher-margin product aimed at a whole new clientele. It’s a recipe that’s worked for years.
Given the harshness of the new regulations, the automaker could find itself paring down its conventional lineup, with FT singling out the new 3.0-liter straight six as a potentially threatened powerplant, at least when it comes to broad availability.
In response to the report, a brand spokesman told Autocar, “Mercedes-AMG is a significant strategic pillar for Mercedes-Benz cars with a clear powertrain strategy for the future.”
Much has been made of Mercedes-AMG’s recent turn towards electrification, but one wonders whether the division’s quest to seek horsepower gains through hybrid drivetrains came too late to save the company from short-term financial pain.
“Starting with the first plug-in hybrids coming to the market in 2020 and followed by a new model range equipped with electrified powertrains, Mercedes-AMG will also contribute to lowering the average fleet emission of Mercedes-Benz Cars,” the spokesman said.
[Image: Daimler AG]
No doubt such policies will soon be implemented in CA and its similarly positioned State followers…and will add Grist to the Mill for the ongoing battle between the California Air Resources Board and the Trump Administration.
I’m imagining the bumper stickers:
When Hellcats are outlawed, only outlaws will have Hellcats!
Climate nutters that vote LEFT for MORE and bigger gov’t are the sole reason why this will happen. The eco-mentalists that put “climate” ahead of dreams and innovations will rue the day when the lefty-EU folk cancel ALL “performance” motors. Good luck with riding Socialised Transportation in the not-so-near future
You can always hoon in a Tesla, at least until the juice runs out.
Not even until it runs out. Usually two fast launches, and then the battery needs cooling.
Maybe in the Taycan, though.
@mbella. That’s BS, especially on a Model 3 which has a good cooling system.
30 Model 3 launches 0 to 60:
youtu.be/dT6wSGFaUK0
With congested roads, low speed limits, traffic cameras everywhere, and expensive gas, there’s little demand for performance or dreams anyway.
“The eco-mentalists that put “climate” ahead of dreams and innovations”
I dunno, plenty of innovations have come out of making things cleaner and more efficient. not that I expect a trog like you to understand or admit it.
“reason why” is redundant. Just one of the two words will suffice.
Time for Gerexit?
Germans who own EU will not let it happen if they have any remnants of national pride left.
CAR magazine had a short item re: the implications of the EU CO2 limits. VW faces more than a billion euros in fines based ion its current lineup. Theses refs will force the electrification or at least hybrid version of almost everything.
Having grown up in the 50s and 60s, and lived in Los Angeles in the 70s, the air today is MUCH cleaner. I really don’t believe that strangling the production of a few AMG vehicles is going to improve my well being. Charge more for the cars and spend the $ on a new “Cash for Clunkers” program and get the old smokers off the road. That is a better solution.
@gasser–Agree get the old vehicles off the road with a Cash for Clunkers especially any vehicle older than 10 years old unless it is a historical or collectors car which you can get special license plates and insurance for and should not be used as daily drivers. No amount of regulation to clean the air is going to work if there are old poorly maintained vehicles on the road used as daily drivers.
Ahem. I resent the implication that a vehicle is poorly maintained based solely on its age. I see the HC and CO figures each year from my 24-year-old truck and they are *well* below the limits. (Plus my annual miles on that vehicle are incredibly low.)
Western Europe sends all the used cars to Eastern Europe, where the economy is much lower and they will keep that Audi which failed TUV going for a long time….so end result here will be very small.