They haven’t been using “defeat devices,” to cheat on emissions tests, as was the case with Volkswagen (ETR:VOW3). However, diesel vehicles made by Mercedes-Benz, Honda (NYSE:HMC), Mazda (TSE:7261) and Mitsubishi (TSE:8058) also put out more dangerous emissions on the road than in lab tests.
The Guardian reported that while vehicles from the auto makers hold up well in EU lab-based regulatory emissions tests, pollution from the vehicles goes well over regulatory limits in more realistic on-road tests. Honda, for example, emitted six times the regulatory limit of NOx pollution. A more detailed breakdown of emissions for each company can be found in The Guardian’s article.
Mercedes-Benz, Honda, Mazda and Mitsubishi are not the only companies that have joined the Volkswagen scandal either — The Guardian also reported last week that vehicles from no less than six other manufacturers pollute more under realistic driving conditions.
The news follows revelations that Volkswagen installed defeat devices in its diesel engines to cheat on its emissions tests. Since that news came out, Volkswagen has admitted to using defeat devices on roughly 11 million vehicles worldwide.
That could be bad for the platinum price. The metal is used in autocatalysts for diesel engines, and if demand for diesel vehicles goes down due to emissions issues — which a number of analysts are calling for — that will mean less demand for platinum as well. Along the same lines, others have suggested that the scandal could accelerate a shift to electric vehicles.
That said, others have suggested that the platinum price won’t be hit as badly as many expect. The metal’s price fell as low as $894 per ounce last Tuesday, but has since bounced back. On Friday, the spot platinum price was up 3.16 percent, sitting at $978.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.