Phasing out combustion engines sales sooner is better for Europe’s car industry and auto jobs.Car manufacturers stand to increase their market value and profit margins by switching to electric vehicles faster than they currently plan, according to aof six car companies. It finds the automakers would add €800 billion to their stock value if they transition faster¹ this decade instead of hanging onto their combustion engine business model.
Towards the end of the 2020s, the profit margins of engine-makers are set to decrease and even become negative on balance sheets. The valuation of the six carmakers could grow 316%, on average, compared to today by transitioning to electric faster between 2025–2030 than their current plans.
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