Most European car manufacturers officially asked Brussels on Thursday for “urgent aid measures” to face the tightening of CO2 emissions standards in 2025.2 which they feel unable to meet, particularly because of the erosion of sales of electric cars.
The European Automobile Manufacturers’ Association (ACEA), of which Stellantis is no longer a member, “calls on the European institutions to propose urgent aid measures before the new CO2 targets are met.”2 for cars and vans will not come into force until 2025,” it said in a statement.
Thanks to the rise of electric vehicles and the improvement of thermal engines, manufacturers have so far complied with the so-called CAFE (Corporate Average Fuel Economy) standard, which requires them, under penalty of heavy fines, to respect an annual average of emissions per car sold.
But the continued decline in sales of electric cars since the end of 2023 (12.6% of sales in Europe over the last twelve months compared to 13.6% a year earlier) complicates the situation.
“We are playing our part in the transition” through the electrification of vehicles, the manufacturers defend themselves, but “we lack essential conditions to stimulate the production and adoption of zero-emission vehicles: hydrogen charging and distribution infrastructures, as well as a competitive production environment, affordable green energy, tax incentives and purchase aids, and a secure supply of raw materials, hydrogen and batteries.”
“This raises the daunting prospect of multi-billion euro fines, which could be better invested in the transition to carbon neutrality, or unnecessary production cuts, job losses and a weakening of the European supply and value chain,” the manufacturers warn.
“We urge the European Commission to bring forward the revisions of the CO regulations to 20252 for light vehicles and heavy vehicles, currently planned for 2026 and 2027 respectively,” continues ACEA, chaired by Renault boss Luca de Meo.
“We’re racing”
Dissociating itself from its competitors, European number 2 Stellantis defended the entry into force of the new standard to AFP on Sunday: “Everyone has known the rules for a long time, everyone has had time to prepare, and so now we are racing,” declared Carlos Tavares.
ACEA, in an informal note cited by Bloomberg and The Worldunconfirmed but not denied, suggested on September 13 that the European Commission activate a rare emergency procedure to postpone the strengthened standards by two years.
Manufacturers estimated the potential amount of fines at 13 billion euros, according to this document. Or else be forced to reduce their production of thermal vehicles by more than two million units, “the equivalent of more than eight factories”, with the associated job losses.
Manufacturers could also buy emission credits from less polluting manufacturers, but thus subsidise their non-European competitors.
Electric vehicles are being held back by several factors: Germany, Europe’s largest market, has eliminated purchase bonuses, entry-level models are only just arriving on the market, and buyers are concerned about limited range and still sometimes insufficient charging networks.
But sales of electric vehicles could rebound in Europe in 2025 and reach between 20% and 24% of new car sales, according to a study published Tuesday by the think tank Transport&Environment (T&E).