Car Manufacturers Face Oil Company Level Transition Risks Over Emissions Reporting

A report from Carbon Tracker suggests that car manufacturers are under-reporting their emissions, creating financial and transition risks similar to those faced by major oil companies. The analysis highlights how a heavy reliance on hybrid vehicles may lead to stranded assets as climate regulations tighten. Toyota is specifically singled out for its hybrid-heavy strategy, which critics argue could expose the company to significant liability. The findings suggest that the automotive industry's current accounting methods may mask the true scale of their climate risk.