CHANGE: Race is on as carmakers shut, switch or sell combustion engine factories.

Carmakers will increasingly find themselves in a race to shut, switch or sell factories producing vehicles with internal combustion engines to avoid being left with “stranded assets”, as regulators set a course for a decade of electrification to reduce carbon dioxide emissions.

Traditional manufacturers are currently playing a “zero sum game” because growth in electric car sales eats into the value of internal combustion engine factories, which “are effectively stranded assets”, a leading analyst has warned.

Philippe Houchois, an analyst at Jefferies, an investment bank, said carmakers’ share prices will be in large part dependent on their ability to avoid losses on fossil fuel assets. “If you want to be a better valued carmaker you need to find a way to shrink your assets faster than a gradual transition to electric vehicles would suggest,” he said.

When are we going to build the nuclear plants necessary to power EVs while actually reducing emissions?