Key discussions at a recent Brussels automotive summit focused on tightened fleet emission targets, which have led to disagreements among manufacturers regarding compliance.
The EU is shifting towards a pro-business approach in response to complaints about excessive regulations linked to climate and business ethics, aiming to enhance competitiveness against the US and China.
Discussions with automakers also touch on potential trade disputes with the US and ongoing litigation from companies like BMW and Tesla regarding EU tariffs on electric cars from China.
As of September 2024, only Volvo had met its 2025 emissions target, while other manufacturers like Ford and Volkswagen lagged significantly behind.
The European Union is actively working to support its struggling automotive sector, which employs 13 million people and contributes about 7% to the EU's GDP, by developing a new action plan to address ongoing challenges.
France and Italy are urging the EU to refrain from imposing fines this year, advocating for leniency to support the automotive sector during its critical transition phase.
Environmental group T&E argues that the automotive industry has had ample time to prepare for emissions targets, suggesting that fines would likely be below 1 billion euros, with increased EV sales expected.
The German Automotive Industry Association (VDA) is pushing for a relaxation of fleet emission targets and the continued allowance of combustion engine cars beyond 2035.
Amidst high manufacturing costs and a slow transition to electric vehicles, the automotive industry is facing significant job cuts, with Volkswagen announcing plans to reduce 35,000 jobs by 2030.
Automakers are under pressure to meet stringent CO2 targets by 2025, with potential fines reaching up to 15 billion euros if they fail to comply.
ACEA President Ola Källenius has called for a 'reality check' on climate targets, emphasizing the need for adjustments to penalties for non-compliance.
This strategic dialogue, announced two months ago, emphasizes the personal involvement of EU Commission chief Ursula von der Leyen in addressing the industry's challenges.
