Commentary

European Auto ABS: French Portfolios Transition to Alternatively Fueled Vehicles

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Summary

This commentary discusses the transition towards alternatively fuelled vehicles (AFVs) and the relevance for auto asset-backed securities (ABS) in the Republic of France.

Key summary highlights include
-- The shift away from internal combustion engine vehicles towards zero- and low-emission vehicles (ZLEV);
-- The direct effect of government policies on the vehicle fuel type mix evolution;
-- Our views on associated risks relating to balloon loans and residual values; and
-- The expected impact of these changes on French auto ABS transactions.

“As the race towards net-zero economies across Europe intensifies, DBRS Morningstar expects the mix of receivables related to underlying AFVs to continue increasing at pace in French auto ABS transactions,” said Miklos Halasz, Assistant Vice President, European ABS at DBRS Morningstar.

Available Documents

European Auto ABS: French Portfolios Transition to Alternatively Fueled Vehicles

Jun 01, 2023