ACEA: ‘Euro 7 disastrous for European car industry’

The European Automobile Manufacturers Association (ACEA) has long spoken out against the introduction of Euro 7. The trade association fears high investments that do not outweigh the negligible benefits that Euro 7 offers, according to ACEA. Carlos Tavares – until recently president of ACEA – was regularly critical of the policies of the European Union with regard to the car industry and now it is the brand new ACEA president Luca de Meo – better known as the CEO of Groupe Renault – making itself heard. De Meo writes an open letter to the European Parliament and the European Commission in which he argues for a clear policy that, in ACEA’s view, does help the industry move forward.

Luca de Meo believes that with the introduction of Euro 7 the EU is actually regulating old technology instead of stimulating the path towards an ’emission-free car industry’. De Meo says that the European car industry is currently struggling and that current EU policy is hindering the achievement of the ultimate goal – complete decarbonisation of the industry. “The Euro 7 plans that are now on the table force manufacturers to invest billions in engines and after-treatment systems, with minimal environmental benefits as a result.” De Meo says that this money and this development capacity can be spent much better on the further development of completely emission-free means of transport.”

Criticism of ‘all-electric’

According to the ACEA president, the Euro 7 policy may have major harmful consequences. Economic, social and political. De Meo says he fears that the European (automotive) industry will lag behind that of other regions, including China. According to De Meo, the size of the Chinese car industry has increased twenty-fivefold since 2003, while that of Europe has shrunk by 25 percent over the same period. De Meo is also not very positive about the transition to selling only electric cars in the European Union. The ACEA president questions whether it is wise to dictate to the industry which technology can and cannot be used in the future. “It remains to be seen whether that is the right choice. According to De Meo, “advanced hybrid powertrains from a scientific point of view” can already mean a lot when it comes to reducing CO2 emissions.” According to the ACEA president, only 5 percent of the raw materials needed for the production of batteries for electric cars will come from Europe by 2030.

The ACEA minister is also concerned about the affordability of mobility for EU citizens. “The cost of batteries and electricity is high and we have little influence on that.” To compensate for the loss of tax revenue on petrol, for example, electricity should be heavily taxed, writes De Meo. “It is not for nothing that there are already various subsidy schemes to boost the sale of electric cars, but the demand for EVs in the European Union remains low.”

Charging points

Moreover, the European car industry would have to cope with much greater changes than, for example, the energy industry. “Emissions from new passenger cars must actually be reduced by 100 percent by 2035. The energy industry only needs to reduce its emissions by 70 percent by 2035.” The Meo is not ready yet. He calls on the EU to rapidly scale up the charging infrastructure in Europe. Member States should work closely together to improve the charging infrastructure. “Currently, only 2,000 public charging points are added every week in the European Union. That would have to be 14,000 to enable the transition to fully electric.”