COVID-19 Has Caused Major Disruptions
Several manufacturers are asking EU authorities to postpone the implementation of Euro 5 emissions standards. The EU has ever-tightening emissions standards, and while this is good for environments, it makes for a notable hurdle for many motorcycle manufacturers.
While many were moving forward with plans to updated and innovate so that they could continue selling products that everyone loves, the situation with the Coronavirus has caused some notable issues with revenue and profits, which also impacts the ability to address the needs of the new emissions standards.
Euro 5 is set to enter into effect in January 2021. That’s coming up quickly, and the new date proposed by manufacturers and others in the industry is January 2022. That’s only one year, but it could take some convincing to make that happen.
Paolo Magri, boss of Brembo and the head of Italy’s motorcycle industry association, ANCMA, said the following, according to Bennetts:
“The effect of this provision – that the industry welcomed with a sense of responsibility to contain the effects of an emergency unprecedented healthcare – is the total block of sales over a period of time which, at this stage, it is not possible to determine. The damage to the sector is aggravated by the unhappy concomitance with the transition between Euro 4 and Euro 5 engines, governed by European Regulation 168/2013: starting from 1 January 2021 it will no longer be possible to register Euro 4 mopeds and motorcycles, except for those allowed by the end of series waivers normally provided by the EU directives to help builders dispose of stocks.”
It will be interesting to see how the EU responds to this. I would hope they take a close look at the impact of the Coronavirus on these manufacturers and then assess a proper response.