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New car regulations

There was news today that Brussels has agreed to 30 new safety requirements for vehicles that will apply between May 2022 to new vehicles and May 2024 for existing vehicles.

New cars will have to fit an intelligent speed assistance system, or ISA, that will display the current speed on the dashboard and limit the current speed until the driver presses hard on the accelerator.

It is believed that having an ISA will cut fatalities on EU roads by 20%.

There are other requirements for automated emergency braking, advanced driver distraction warning, reversing detection and new rules for crash tests and windscreens, among other things.

This is going to be great for safety and suppliers of sensors, but a nightmare for manufacturers who will either have to wear the costs or charge higher prices to the customer.

I would expect developments like this to put even more pressure on vehicle manufacturers to consolidate in order to cut what costs they can.

Renault merger talks

Talking of which, there was news this morning that Renault said that it is aiming to start merger talks with Nissan within the next 12 months and added that it would like to buy another carmaker, with Fiat Chrysler looking like the prime target.

Apparently, there were talks between Renault and Fiat Chrysler a few years back but the French government put a stop to them, but now Fiat Chrysler is actively seeking a partnership or merger as the car industry continues to face ongoing difficulties.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Peter Watson

Peter Watson

Peter Watson founded Seiha Consulting, a career transition consultancy, after working in HR and four recruitment agencies. He was also a stockbroker for 13 years in London and Tokyo, advising some of the world’s biggest financial institutions on European and Japanese stock market investment. He started writing the Daily (previously known as “Watson’s WIFI”) to help candidates prepare for interviews – but soon found that many others wanted to read it as well!

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