DETROIT: The chief executive of Daimler said Monday at the Detroit auto show that his company cannot currently guarantee it can meet tougher European CO2 emissions standards taking effect in several years.
Dieter Zetsche, CEO of the maker of Mercedes-Benz luxury vehicles, told reporters he “can’t guarantee” to meet tightening emission standards in 2021.
“It’s a huge challenge for everyone,” he said later in an interview. “We will make it. That’s our intention. But I can’t guarantee it.”
A regulation adopted in 2014 requires vehicle manufacturers selling vehicles in the EU to reach, with some exceptions, a level of 95 grams of CO2 emitted per kilometer by early 2021, compared to 130 grams in 2015.
Manufacturers that fail will be fined €95 per car and gram of excess CO2. This could potentially lead to fines in the tens or hundreds of millions of euros.
Fellow automotive CEO Sergio Marchionne of Fiat Chrysler said he understood Daimler’s predicament, and his company was also looking at how to meet the tougher standards — with non-compliance not an option.
“We’ve gone through this. It ain’t pretty,” he said, regarding the cost of fines.
“Having said this, we have no intention of pulling vehicles, because we think we can meet the standards.”
German manufacturers, whose large engines emit more CO2 than smaller models, are struggling to achieve the goals, according to experts.
So far, they have relied on diesel to reduce emissions. But diesel engine cars have fallen out of favor with consumers and sales have dropped, exacerbated by the Volkswagen diesel emissions cheating scandal.
“It’s dragged all of us into the very uncomfortable state where we are now on the defensive continuously about the utilization of diesel in the market,” Marchionne said.
To help comply with the new standards, manufacturers are developing a range of electric vehicles, with no certainty about the real-world demand from consumers.
Daimler struggling with European emissions standards
Daimler struggling with European emissions standards
Egypt’s central bank raises economic growth forecast to 5.1 percent in current year, 5.5 percent next year
RIYADH: The Central Bank of Egypt has raised its economic growth forecast to 5.1 percent for the 2025/26 fiscal year and 5.5 percent for 2026/27, up from previous projections of 4.8 percent and 5.1 percent, respectively.
The improved projection is attributed to the anticipated increase in contributions from the non-oil manufacturing and services sectors, with expectations of accelerated growth supported by the continuation of the monetary easing cycle.
This is expected to support real growth in credit extended to the private sector in the coming period, therefore boosting economic activity, according to a statement.
The revised forecast follows Egypt’s 5.3 percent gross domestic product growth in the first quarter of 2025/26, the strongest expansion in more than three years, according to the Minister of Planning and Economic Development Rania Al-Mashat in November.
At the time, Al-Mashat underlined that this acceleration was driven by improvements in productive sectors.
This also supports ministry data released in September showing that the economy expanded 4.4 percent in fiscal year 2024/25, supported by a strong fourth quarter when growth reached a three-year high of 5 percent.
The newly released report from Egypt’s central bank said: “Furthermore, forecasts are further strengthened by an anticipated stronger performance in the extractive sector, underpinned by multiple successful onshore and offshore discoveries of crude oil and natural gas, which are expected to gradually increase domestic production.”
It added: “Additionally, the growth outlook is further reinforced by a projected rebound in Suez Canal activity during the current fiscal year, assuming the normalization of maritime traffic in the Red Sea in light of the recent peace deal in Gaza, which has restored confidence and prompted the return of shipping lines through the Canal, including Maersk and CMA CGM.”
The report said continued strength in manufacturing, services, and Suez Canal activity is likely to support real GDP growth throughout the forecast horizon.
As for inflation, the analysis indicated that annual headline inflation is expected to keep slowing down throughout 2026, although it will remain slightly higher than the original forecast, before returning to the target level by the fourth quarter of 2026.
“As such, annual headline inflation is expected to average 12.5 and 9.0 percent in fiscal years 2025/26 and 2026/27, respectively,” the report said.
