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The European automotive industry calls for urgent measures.

01.10.2024

Brussels, September 19, 2024: The continued decline in the market share of battery-electric vehicles in the European Union is pushing the automotive industry into crisis. The European Automobile Manufacturers' Association (ACEA) is therefore calling on EU institutions to urgently present relief measures before the new CO2 targets for cars and vans come into force in 2025.

With only three months left until the new regulations take effect, ACEA's demand is clear: deadlines should perhaps be postponed by two years to gain the necessary time to make up for lost ground.

The association, led by Luca de Meo, CEO of Renault, states that the automotive industry has done its part and invested billions in electrification, but the truth is that "the other necessary elements for this systemic change are missing." These include "charging and hydrogen infrastructures," a "competitive production environment," "affordable green energy," "tax and purchase incentives," and a "secure system for the supply of raw materials, hydrogen, and batteries."

Faced with a struggling European industrial sector, postponement seems to be the only way out.

However, while ACEA is pushing for an extension, some voices see even greater danger in this request: the European automotive industry could fall into prolonged agony.

According to Transport & Environment, delaying the introduction of the regulations would only postpone the inevitable collapse. The organization urges European lawmakers to stay the course and even accelerate investments to boost the demand for electric vehicles.

The current CAFE (Corporate Average Fuel Economy) regulations stipulate that CO2 emissions from new cars sold in 2025 must be reduced by 15% compared to 2020, with a limit of 93.6 g/km. This is already a challenging goal, which will become even stricter by 2030, when emissions must drop to 49.5 g/km, ultimately reaching zero-emission levels by 2035. However, if the current pace of electric vehicle adoption continues, Europe could miss this target well beyond 2040.

The future of the European automotive industry hangs by a thread. The implementation of decisive and immediate measures is the only chance to avoid a catastrophe that could erase decades of industrial leadership on the continent.