According to a report by Bloomberg, the European Union's automotive lobbying group has drafted a proposal suggesting that the EU should invoke emergency regulations to delay the implementation of the 2025 emissions targets for automakers by two years.
Estimates by the European Automobile Manufacturers' Association (ACEA) included in the proposal indicate that the EU's 2025 emissions targets would require car manufacturers to reduce carbon emissions to approximately 95 grams per kilometer per vehicle. Failure to meet this target could force manufacturers to either cease production of around two million vehicles or face fines of up to €13 billion (about $14.3 billion) for passenger cars and €3 billion for vans.
The proposal further argues that to comply with the stricter 2025 carbon emission standards, the market share of electric passenger cars and vans in the EU must reach around 20% to 22%. Currently, the market share for electric passenger cars in the EU has stagnated at below 15%, with an even lower market share for electric vans.
The proposal states: "Due to weak consumer demand for electric vehicles and intensified competition from Chinese EV manufacturers, the EU automotive industry may be unable to meet the expected emissions reduction targets."
It adds: "The EU automotive industry has no choice but to significantly cut production, which will threaten millions of jobs across the EU, harm consumer interests, and negatively impact the competitiveness and economic security of the European automotive industry."
Robin Loos, Deputy Director of Energy, Transport & Sustainability at the European Consumers Organisation (BEUC), commented: "This is a difficult path. These emissions targets were set six years ago, but the EU automotive sector failed to make adequate predictions."
On September 12, the European Automobile Manufacturers' Association issued a statement on its website saying: "The EU automotive industry has invested billions in transitioning to electrification, but the other necessary conditions for this transformation are not yet in place, and the EU's competitiveness is being eroded."
However, a spokesperson for the association clarified that no official position paper has been published, and the association has not formally taken a stance on the proposal.
Looking further ahead, the EU plans to phase out the sale of new combustion engine vehicles by 2035, with a review of the target scheduled for 2026.
Currently, however, the EU automotive industry is facing not only fierce competition from Chinese manufacturers but also high energy costs and a cost-of-living crisis that has weakened consumer demand for electric vehicles. At the same time, EU automakers must prepare for the upcoming 2035 ban on combustion engine vehicles in the region.
