Carmakers enter race to exit combustion engine factories

Manufacturers’ share prices will be dependent on their ability to avoid losses on ‘stranded assets’, says analyst

Carmakers will increasingly find themselves in a race to shut, switch or sell factories producing vehicles with internal combustion engines to avoid being left with “stranded assets”, as regulators set a course for a decade of electrification to reduce carbon dioxide emissions.

Traditional carmakers are currently playing a “zero sum game” because growth in electric car sales eats into the value of internal combustion engine factories, which “are effectively stranded assets”, a leading analyst has warned.

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