Selected Impacts of Regulation (EU) 2019/631 On Value Creation in the Automotive Industry

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F29142890%3A_____%2F21%3A00041046" target="_blank" >RIV/29142890:_____/21:00041046 - isvavai.cz</a>

Result on the web

<a href="https://www.sciendo.com/article/10.2478/fiqf-2021-0022" target="_blank" >https://www.sciendo.com/article/10.2478/fiqf-2021-0022</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.2478/fiqf-2021-0022" target="_blank" >10.2478/fiqf-2021-0022</a>

Result language

angličtina

Original language name

Selected Impacts of Regulation (EU) 2019/631 On Value Creation in the Automotive Industry

Original language description

Road transportation is responsible for a significant part of the EU’s total CO2 emissions. Therefore, the automotive sector is subject to continuously strengthening environmental regula-tion. Regulation (EU) 2019/631 of the European Parliament and of the Council of 17th April 2019 sets, for the period from 2020 to 2024, an EU fleet-wide target of 147 g CO2/km for the average emissions of new light commercial vehicles and an EU fleet-wide target of 95 g CO2/km for the average emissions of new passenger cars, phasing in for 95% of vehicles in 2020 with 100% com-pliance in 2021. If a manufacturer does not meet given CO2 standards, the excess emissions pre-mium (penalty) is to be charged. Value creation in the automotive sector across the supply chain is necessarily undergoing a process of change. Manufacturers of passenger cars and light com-mercial vehicles are forced either to face a massive penalty or to invest in the development of low-emission technology and in the change of the production portfolio towards zero- and low-emission vehicles with lower profit margins and a relatively unformed customer base. The aim of this paper is to identify how the excess emissions premium affects the value creation in the auto-motive industry. Our methodology utilizes the income-based valuation approach. First, we con-duct an analysis of the key financial value drivers of automotive companies in the period from 2016 to 2019. Subsequently, we make a prognosis of value drivers for the future period affected by the above-mentioned regulation.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Financial Internet Quarterly

ISSN

2719-3454

e-ISSN

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Volume of the periodical

17

Issue of the periodical within the volume

3

Country of publishing house

PL - POLAND

Number of pages

12

Pages from-to

76-87

UT code for WoS article

000706717100007

EID of the result in the Scopus database

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