Germany Paves Way for Diesel Ban: Dealing Blow to Auto Makers
A German court rang the death knell for certain diesel cars on Tuesday, striking a blow to the country’s flagship auto industry that could now be forced to spend billions to upgrade or replace millions of cars.
Rejecting an appeal of a lower court decision, the Federal Administrative Court in Leipzig ruled that German cities Stuttgart and Düsseldorf, which appealed local court rulings, could ban diesel vehicles from urban traffic as a way to reduce pollution.
Ultimately, the ruling clears the way for other cities to issue bans, which could result in the hometowns of German auto icons Mercedes-Benz, BMW AG, and Audi banning some of those manufacturers’ flagship products.
Germany’s blue chip DAX index fell sharply on the news as the stocks of auto makers Volkswagen A...