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
Mexico eyes trade expansion, targets Saudi market with premium rice exports
RIYADH: Mexico is preparing to expand its trade ties with Saudi Arabia by exporting high-quality rice to the Kingdom, sources told Asharq Al-Awsat.
They said Mexico has an export offer for three premium rice varieties that meet the highest international standards.
Saudi Arabia imports limited quantities of Mexican rice, mainly for use in Mexican cuisine and in restaurants.
The latest initiative reflects the Kingdom’s position as one of the world’s largest rice consumers, with per capita consumption averaging 45.77 kilograms annually, the highest among plant-based food products.
Around 70 percent of consumption consists of basmati rice, while total annual imports exceed 1.3 million tonnes.
According to information obtained by Asharq Al-Awsat, the Saudi Ministry of Foreign Affairs received a request from the Mexican Embassy in Riyadh conveying the interest of the Mexican state of Nayarit in exporting premium rice to the Saudi market.
The embassy said that three rice varieties are available for export, including Super Extra Whole Grain Rice, long grain, with a monthly supply of 120 tonnes; Milagro Super Extra Rice, polished broad grain, with a capacity of 30 tonnes per month; and Morelos rice, a premium-grade variety.
Saudi Arabia has previously taken steps to encourage private-sector imports of Cambodian rice in a move aimed at diversifying supply sources alongside imports from India, Pakistan, the US, and Egypt.
Strong demand for favored rice varieties in Saudi Arabia and across the Gulf, combined with challenges such as rising shipping costs and climate-related disruptions, has occasionally led to price fluctuations. These factors have prompted the Kingdom to broaden its supplier base to ensure the availability of this commodity and maintain price stability.
The government recently decided to increase Pakistani rice imports to account for 20 percent of total needs, reinforcing supply stability and food security.
Forecasts suggest that per capita rice consumption in Saudi Arabia could rise to around 50 kg annually in the coming years, up from the current 45.77 kg, underscoring rice’s central role in the Kingdom’s food industry and traditional cuisine.
