Nick Casey of Reuters reports that low resale values are causing concerns for leasing companies in Europe, putting the EV push at risk. Casey writes:
Low resale values for electric cars have pushed the leasing firms that drive Europe’s auto market to double prices over the last three years and some are threatening to quit the business altogether if regulators force them to go electric too fast, industry executives say.
The jump in prices for electric car leases comes as cuts in subsidies for new EVs in key markets such as Germany are hitting sales and risks stalling Europe’s electric transition, just when Brussels wants to step on the accelerator, the executives say.
“If we were pushed very, very hard, that everything has to be electric too soon … my shareholders will say ‘we don’t want to take the risk’ and we’d be out of the market,” said Tim Albertsen, CEO of Ayvens (AYV.PA), opens new tab, one of Europe’s largest auto leasing firms. “Let’s be honest, without us, who will take the risk?” […]
But leasing companies are taking the threat seriously.
Leaseurope said an EV mandate would significantly damage leasing companies and Arval’s Beckers says that, at a minimum, it would have to raise future lease rates further.
“Simply put, prices would go up,” he said. “That would discourage corporate fleets from continuing to lease.”
($1 = 0.9154 euros)
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