Many car brands will disappear within a short period of time because the builders will not be able to pay for the transition to electric driving. Furthermore, the price of a new car will rise by thousands of dollars in the coming years according to Telegraaf.
An electric car is more expensive now, but the prices of petrol and diesel cars are also going up. Within four years or so, it will increase, says a top executive at the German car brand Audi.
Schot argues that carmakers now have to pay for investments in electric cars out of profits on petrol and diesel cars, while the share of fossil-fuel driven cars in total sales is decreasing.
The profit on electric cars is lower than that of an internal combustion engine.
According to him, the number of car brands will fall sharply. Especially the brands that already barely make a profit or even make a loss, will no longer be able to meet their financial obligations.