EU emissions rules ‘put carmakers at risk’

European carmakers face a “real risk” to their financial performance and creditworthiness from European Union legislation aimed at cutting cars’ carbon dioxide emissions, Standard & Poor’s warned on Tuesday.

Car companies – mostly operating on razor-thin margins – will have to invest heavily to comply with the proposed new standards and will also be hurt by a consumer shift toward smaller vehicles, said the credit rating agency, which described the legislation as “punitive”.