Automotive emissions cheating: which company is next?

An InfluenceMap Note

January 2017

Fiat Chrysler Automobiles follows Volkswagen as the second major global automaker in the last 18 months to be accused by US federal authorities of cheating on emissions regulations. Wary of the huge liabilities such infringements can bring in the US, investors fled the stock, which dropped by close to 20% within a few hours on January 12th. Can scrutiny of corporate behaviour on regulations give investors clues on potential time bombs in their portfolio? We look at the four lowest scoring companies in our survey: Fiat Chrysler, Ford, Daimler and Hyundai.

“We believe that the level of support the automakers are showing to regulations that the US EPA, the European Commission and other mandated bodies are proposing, and the consistency of this support within the organization, is an indicator of the culture of the company towards compliance and future readiness for a stricter regulatory regime. On this basis, our metrics show that as well as VW and Fiat Chrysler, Ford, Hyundai and Daimler warrant particular investor scrutiny." Dylan Tanner, Executive Director, InfluenceMap