Europe carmakers call for ‘urgent action’ as emission rules loom

PARIS: European automakers are calling for "urgent action” ahead of 2025 emissions targets that could potentially cost billions of euros in fines for some of them at a time when the industry is struggling with a sharp slowdown in electric vehicle demand.

The industry is also urging the European Commission to bring forward planned C02 regulation reviews to next year from 2026 and 2027, the Brussels-based European automobile Manufacturers’ Association said in a statement Thursday following a board meeting on Wednesday.

The group fell short of requesting use of emergency regulation to delay EU rules targeting a fleet emission of about 95 grams of CO2 per kilometer per vehicle by two years, an option under consideration according to a draft proposal obtained by Bloomberg News last week.

Renault SA chief executive officer and ACEA president Luca de Meo has been vocal about the need for flexibility in the implementation of stricter rules that could force the industry to either halt production of about 2 million cars or be exposed to fines that could reach roughly €15 billion ($16.7 billion).

Europe’s auto manufacturers, "united in ACEA,” are playing their part in the transition "but unfortunately, the other necessary elements for this systemic shift are not in place,” they said in the statement.

Europe’s manufacturers are struggling to weather a steep downturn in EV demand after governments reduced incentives, while at the same time Chinese carmakers are increasingly expanding in the region.

From January to July, fully electric vehicles made up 12.5% of all new car registrations in the EU, according to ACEA figures, well below the level needed to be compliant with the stricter emissions rules.

The developments are putting pressure on the EU’s deadline to effectively ban sales of new combustion-engine cars from 2035, with European automakers divided over the way forward in the face of looming new rules.

"We stand ready to discuss a package of short-term relief for the 2025 CO2 targets for cars and vans,” ACEA said in the release.