The European Automobile Manufacturers Association (ACEA) issued a warning to the European Commission about the danger facing the sector, pointing out that despite billions of euros invested by the industry and … With more than 300 electric models on offer, the CO2 targets set for 2030 and 2035 are no longer realistic.
In an opinion piece, Sigrid de Vries, Director General of ACEA, highlights the sector’s commitment to electrification, which will be the driver of future mobility, but criticizes the lack of synchronization of the ecosystem.
The industry claims that governments have not ensured the necessary investment in charging for infrastructure or network improvements and that market incentives are inconsistent. According to De Vries, the solution is not to abandon electricity, but to adopt a “smarter and more realistic” approach that adapts to the realities of European diversity, mobility needs and global competitiveness.
The association of major European manufacturers, ACEA, has made five key recommendations on the European Commission’s ‘automotive package’ which is expected to take place on 10 December and represents a crucial opportunity for a course correction.
The five key industry requests first consider the need to implement a differentiated approach by sector with ACEA insisting on the need to apply a “three-track” approach that adapts cars, vans and heavy vehicles as the transition towards electrification and net emissions neutrality progresses at different rates.
This involves adjusting CO2 reduction targets for small lorries, which are essential for SMEs, and a rapid review of heavy duty vehicle (HDV) regulation.
Second, the Association is committed to a flexible and technologically open framework given that the current regulation focuses on the supply of new vehicles without stimulating real demand. The sector is demanding flexibility to avoid multi-million dollar fines, and technologies that can be powered by renewable energy such as hybrid vehicles (PHEV), long-range electric cars, synthetic fuels, and hydrogen with a fuel cell are not excluded.
In addition, remaining emissions are required to be offset by rewarding manufacturers for reducing CO2 in the supply chain, for example by using green steel or aluminium.
Third, they demand greater demand enhancement because they consider purchasing decisions to depend on price, electricity costs, and convenience. Therefore, Sigrid de Vries explains, “the EU and Member States must prioritize financial incentives rather than binding mandates.”
It is recommended that corporate fleets act as drivers of demand and that public authorities lead by example in their tenders. Addressing the shortcomings in charging and refueling infrastructure that create a three-speed Europe remains a priority constraint.
Fourth, a cautious approach to “Made in Europe” is needed. The automotive industry, which generates 2.5 million direct jobs and represents more than 7.5% of the EU’s GDP, is already investing heavily in Europe, but the supply chain is global and too complex, according to manufacturers.
“Any local content requirements should be rolled out gradually with sufficient implementation time, respecting trade rules, relying on smart incentives and improving the foundations of competitiveness such as affordable energy and qualified workers,” says the ACEA Director-General.
Finally, there is a need to simplify regulation. ACEA supports overall simplification but warns of one hundred pieces of legislation planned over the next five years. They call for a more phased implementation of legislation such as the required postponement of some parts of Euro 7 and support the push to revive the manufacturing of small, affordable vehicles in Europe where regulatory simplification will have the greatest impact.
The ACEA Director concludes that the automotive sector is a cornerstone of the European economy but its leadership requires more than just political ambition. The Commission’s automotive package therefore represents an important moment of truth for the EU to ensure the competitive future of the industry.