Traveling in Europe in a diesel-powered car is now an experience in itself as you recognize that over half of the automobiles around you are poisoning the air with NOx.
Europe is in upheaval over Volkswagen’s revelations, the scandal, and developing change. As we expected, public reaction to poisonous air grows. Stories about it make the front pages of newspapers and headline stories in television and web-based media. A growing green evolution is taking place in Europe. Announcements by Volkswagen (DE:VOWG) of multi-billion-dollar changes, alterations of technologies, and a movement to electric cars all presage an evolution of automobiles in Europe.
Volkswagen related conversations so far indicate to us that old, dirty diesel technology is going to be phased out in Europe. Cleaner technologies will end up in a growth-oriented boom, with a new, retooled auto sector emerging as it applies Moore’s law to the automobile. The scandalous revelations regarding Volkswagen are now triggering a large capital change in the automobile market. As a result, there will be more electric cars and cleaner air.
In an upcoming missive we will focus on central banking issues, the European Central Bank, and negative interest rates.
David R Kotok, Chairman & Chief Investment Officer.