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The EU car industry wants plug-in hybrid vehicles to be considered carbon neutral, but data from thousands of vehicles shows that PHEVs emit just 19% less CO₂ per km, on average, than petrol and diesel cars. Carmakers are pressuring EU lawmakers to treat hybrids as clean vehicles under a ‘technology neutral’ approach to decarbonising cars. But T&E analysis of emissions data from 127,000 PHEVs finds they emit far more than claimed and the extra fuel consumed costs the average driver €500 a year.

PHEVs are supposed to save on emissions and fuel by switching between a battery, which is recharged by being plugged in, and a petrol or diesel engine. But in the real world, CO₂ emissions from plug-in hybrids are almost five times what official tests suggest. The real-world data differs hugely from the official ‘WLTP’ tests where vehicles are driven in a way that regulators consider to be normal.

In the real world, plug-in hybrids emit 135g of CO₂ per km on average, according to T&E analysis of data gathered by the European Environment Agency (EEA) from fuel monitors on 127,000 vehicles registered in 2023. Petrol and diesel cars emit 166g of CO₂/km on average.

Engines still running in electric mode

Even when driven in electric mode, PHEV engines consume 3 litres of petrol per 100km, on average, the EEA data shows. As a result, they emit 68g of CO₂/km in electric mode – 8.5 times as much as official tests claim. This is because the electric motors in PHEVs generally have insufficient power for higher speeds or steep inclines and the engine needs to kick in. On average, the engine supplies power during almost one-third of the distance driven in electric mode, according to the data.

€500 extra a year

PHEVs cost drivers €500 more a year than claimed to fuel and charge because of the hidden fuel consumption in both electric and engine modes, the report also finds. Not only are plug-in hybrids expensive to drive, they are also more expensive to buy than clean alternatives. The average selling price of PHEVs in Germany, France and the UK in 2025 is €55,700, according to Bloomberg Intelligence. This is €15,200 higher than the average price of a battery electric car.

Lucien Mathieu, cars director at T&E, said: “Plug-in hybrids are one of the biggest cons in automotive history. They emit almost as much as petrol cars. Even in electric mode they pollute eight times as much as official tests claim. Technology neutrality cannot mean ignoring the reality that, even after a decade, PHEVs have never delivered.”

Long range PHEVs = more emissions

PHEV emissions are also increasing because of the trend towards longer electric ranges as bigger batteries make the vehicles heavier and, therefore, burn more fuel in engine mode. These heavier vehicles also consume more energy than smaller cars when driven on the battery. Plug-in hybrids with an electric range above 75 km actually emit more CO₂ on average than those with a range between 45 and 75 km, the data shows.

Mercedes-Benz has the biggest gap between its official and real-world PHEV emissions, according to the 2023 data, emitting 494% more, on average. Its GLE-Class has the highest real-world emissions gap of cars sold that year, exceeding its official value by 611%. The other major European carmakers emitted around 300% more than their official CO₂ ratings.

The European car industry wants to be allowed to sell PHEVs after the EU’s 2035 deadline for zero-emission cars. Carmakers are also demanding that the EU cancel the ‘utility factors’ it has set to correct the CO₂ rating of plug-in hybrids. The utility factors set for 2025 and 2027 gradually correct the gap between official and real-world emissions, meaning carmakers’ EU CO₂ targets get stricter, pushing manufacturers to sell more battery electric cars.

Lucien Mathieu said: “Weakening the rules for plug-in hybrids is like drilling a hole in the hull of Europe’s car CO₂ law. Instead of steering the market toward affordable zero-emission cars, carmakers will flood it with expensive, polluting PHEVs. That risks sinking the EV investment certainty the market desperately needs.”

By Emily Bary

A Deutsche Bank analyst is upbeat about Vertiv’s stock and says the rush of new data-center deals suggests ‘the bull case may not even be bullish enough’

Vertiv makes cooling technologies that are vital to AI data centers.

Data-center technology provider Vertiv Holdings Co. has been a big winner as artificial intelligence has proliferated. But Deutsche Bank says investors who missed out on the stock’s 1,600%-plus rally over the past three years can still get in on future gains – though not quite at the same magnitude.

Admittedly, Vertiv’s stock (VRT) is expensive relative to recent historical levels, at least when you look simply at how it trades relative to forward earnings. Deutsche Bank’s Nicole DeBlase noted it trades at a ratio of 39x, versus its 32x one-year median.

But she thinks it’s better to look at the stock’s ratio of price to earnings to growth, where it screens in the bottom quartile among peer stocks in the multi-industry and electrical-equipment sector, meaning it’s relatively cheap from that perspective.

Read: AI has already disrupted hiring for these jobs, as adoption nears a tipping point

She pointed to “a clear bifurcation in medium-term earnings growth algorithms between the secular growth ‘haves’ and ‘have nots’” and predicts that this split will “persist for the foreseeable future.” Therefore, she thinks it makes sense to look at Vertiv’s profile relative to peers, some of which are exposed to a more challenged macroeconomy.

Vertiv supplies electrical and mechanical equipment that goes into data centers, and DeBlase said it stands to benefit from perhaps $7 trillion in overall data-center infrastructure investments that could be made from 2025 to 2030, a number that comes from McKinsey estimates.

The company provides direct-to-chip liquid-cooling technologies, and that market could grow even more quickly that that for general electric equipment since the revenue base is negligible now. Previously, “traditional data centers did not broadly require liquid-cooling infrastructure,” DeBlase said. But AI is very power intensive and requires cooling systems to maximize efficiency.

DeBlase lifted her price target on the stock to $216 from $168, with the new target implying 20% upside. By applying more bullish assumptions, however, she could see the stock hitting $230, or 27% above current levels.

Don’t miss: AMD’s stock just keeps climbing – and it all comes down to this factor

But the growing hubbub around data-center investments now has DeBlase wondering: “Is the bull case bullish enough?” She noted big recent arrangements such as one between OpenAI and Broadcom Inc. (AVGO) and another between OpenAI and Advanced Micro Devices Inc. (AMD), and those are just a few of the newly announced deals.

“While it is impossible to know to what extent projects of this magnitude were already embedded in third-party data-center capacity forecasts, it does seem fair to say that if sizable project announcements continue, the bull case becomes increasingly likely – and the bull case may not even be bullish enough.”

More from MarketWatch: Why Broadcom’s OpenAI deal may not be all it’s cracked up to be

-Emily Bary

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Aptar today announced that it has been named a World’s Top Companies for Women 2025 by Forbes for the fifth consecutive year (formerly World’s Top Female Friendly Companies). Aptar is ranked 72 out of the 400 companies included on the list by Forbes and their partner Statista.

“Being recognized by Forbes for the fifth year in a row is a testament to the strides we’re making in advancing inclusion, equity and belonging across our global teams,” said Shiela Vinczeller, Aptar’s Chief Human Resources Officer. “When we honor and appreciate each person’s unique strengths, we build a workplace where everyone has the opportunity to achieve their full potential.”

“We are proud to be recognized as one of the World’s Top Companies for Women – a reflection of our meaningful progress to further a workplace where everyone is encouraged to participate in numerous events that promote inclusivity,” said Marcia Thomas, Chief Diversity Officer.

This award is presented on behalf of Forbes and Statista, a leading market research firm. Data for the “World’s Top Companies for Women” is based on an anonymous survey of over 120,000 women working in 36 countries. In this survey, participants are asked to evaluate companies based on three areas: employer brand, public opinion and leadership score. These surveys are conducted periodically over a two-year period.

For a full list of the World’s Top Companies for Women and a breakdown of the methodology, please visit the Forbes website here.

Imagine walking into work next week knowing that some of your team’s most challenging issues have suddenly improved. That process that’s always running into bottlenecks? It’s 60% faster. That product you were constantly having to fix? It’s now perfect 95% of the time. That tool that’s always missing? Everyone knows exactly where to find it.

For employees at GE Aerospace supplier Steel Tool & Engineering, they don’t have to imagine — they’re now seeing dramatic improvements firsthand, thanks to a shingijutsu kaizen event held in partnership with GE Aerospace this past summer.

Kaizen, a tenet of lean management pioneered by the auto manufacturer Toyota, means continuous process improvement. Shingijutsu kaizen events are multi-day problem-solving efforts where teams step away from their day-to-day work and focus on improving high-value processes together. They’re a core component of GE Aerospace’s proprietary lean operating model called FLIGHT DECK.

Rather than put it to use only in its internal shops, GE Aerospace is actively using FLIGHT DECK to improve its massive external U.S. supply chain, including Steel Tool, which specializes in the brazed honeycomb assemblies that surround a jet engine’s turbine blades. Quintin Sweat, a supplier recovery leader for GE Aerospace, partners daily with Steel Tool to ensure their product deliveries stay on track so the company can deliver for its customers. He was instrumental in bringing roughly 40 GE Aerospace and Steel Tool employees together for the shingijutsu kaizen event at Steel Tool’s Detroit facility in July.

“Steel Tool jumped at the opportunity to host this event. They made my job easy,” Sweat jokes. “It can be hard to put your hand up and say you want help, but all credit to Steel Tool, because their team was engaged and ready to collaborate and bought into the FLIGHT DECK fundamentals.”

“I think it took me about 30 seconds to say yes,” says Pete Grunwald, Steel Tool’s vice president of operations. “As a result of saying yes, we were invited down to an internal GE Aerospace shingijutsu kaizen event at its Auburn, Alabama, facility. It was valuable to do that because it really helped prepare us for what went into making these events successful here.”

 

Focusing on the Goals

Participants in the event were split into four teams, each tasked with improving a specific manufacturing process for the week. The teams set measurable goals aligned to safety, quality, and delivery at the beginning of the week and, with the help of Steel Tool production operators, quickly diagnosed existing problems.

“When we’ve done kaizen events in the past at Steel Tool, we’ve had weeks or months to close out action items,” says Desmond Brown, Steel Tool’s business operations manager. “This event was different because it was so focused. Each team knew exactly what needed to be done each day to meet our goals. Compressing it into just a week to accomplish everything meant using our time efficiently.”

Along the way, a lean manufacturing expert and coach — aka a sensei — regularly visited each team to push their thinking. During a shingijutsu kaizen session, the sensei’s role isn’t to give the team the answers, but to challenge, ask questions, and help develop a problem-solving mindset along the way to an improved process.

Pushing through the first part of the week was a challenge, Sweat says. “You’re working with new people, you’re out of your day-to-day rhythm, you’ve got differing assumptions on how to best solve the problem.” As the week progressed, teams began to jell, trial and error led to solutions, and bottlenecks began to clear. At the end-of-week report-out, the teams shared impressive results.

Over the course of the event, the team achieved 58 safety improvements, an 800-piece increased output per week, and 45% and 68% improvements in first-time yield on two separate processes. By reducing the rework and waste involved in making parts, the team provided an instant boost to production output. 

This also led to a newfound confidence on the manufacturing floor, as employees found themselves producing higher-quality work and saw their processes becoming safer and more efficient. “It really reminded us of what our true capabilities as a company are when we’re focused,” Brown says.

 

Lightbulbs and Breakthroughs: FLIGHT DECK in Action

While the numbers were impressive, the best part of the week, Sweat says, was seeing “lightbulb” moments when various teams broke through with new solutions.

”You could see a complete change in demeanor on the entire team once they made their breakthroughs,” he adds. “That moment really shows the power of FLIGHT DECK. It’s not just a one-time initiative. It’s really a mindset and a way of working that we’ve adopted and now are seeing be adopted by our suppliers.”

“We’ve been on our lean manufacturing journey for a while now,” Grunwald says. “But the level of participation in this event is unlike anything I’ve ever seen. This was on another level.”

The event’s outcomes are precisely what GE Aerospace Chairman and CEO Larry Culp envisioned when he introduced FLIGHT DECK at the company’s annual investor conference in early 2024. “Steel Tool is on board to continue this journey with us,” Culp noted in a recent all-employee message highlighting the event. “This is the power of FLIGHT DECK in action.”

As for Sweat, he left the event feeling energized. In fact, he’s already working on a second shingijutsu kaizen event with the Steel Tool team. He also imparted a passionate message for his GE Aerospace colleagues and supply chain partners.

“Achieving these types of results is absolutely possible,” Sweat says. “If you want to get better, this is the way to make it happen. You literally see results the next week. It’s all upside for the supplier with these events.”

It’s a cliché, but in this case it rings true for the partnership between GE Aerospace and Steel Tool: What a difference a week can make.