Grace period for the auto industry

Grace period for the auto industry

EU Commission President Ursula von der Leyen presented an action plan for the European auto industry this week that gives manufacturers a grace period to meet CO2 targets. Since, despite a timely announcement, they are still far from achieving this year's fleet target of an average of 93.6 grams of CO2 per kilometer, the EU Commission is extending the deadline by a further three years until the end of 2027. This means that the threat of billions in fines for the auto industry has been averted for the time being. After the grace period has expired, the balance will be taken again - until then, the total exhaust emissions of all new vehicles sold since the beginning of 2025 must not exceed the threshold of 93.6 grams. Conclusion: The CO2 emissions, which have probably been significantly exceeded this year, must be made up for in the next two years, which can only be achieved with a significant expansion of the range of affordable electric cars. These must then also be accepted by the customers - otherwise the now deferred fines for the manufacturers will actually become due. EU Transport Commissioner Apostolos Tzitzikostas emphasized that the new action plan does not change the stated goal of only allowing emission-free cars and vans to be registered from 2035.

Suppliers want technology openness

Arnd Franz, Chairman of the Group Management Board and CEO of the German automotive supplier Mahle, welcomes the fact that the EU Commission is committed to technological openness in its action plan. At the same time, he demands: "Now the EU Commission must explain specifically how CO2 requirements can be designed to be technology-friendly. We need a diversity of technology that includes battery-electric and hybrid vehicles with renewable fuels if we want to quickly reduce CO2 emissions and secure hundreds of thousands of jobs in Europe." The planned measures to strengthen demand, such as requirements for company fleets or rules of origin for European components, could provide some short-term relief, but would distract from the actual challenges. “Our competitiveness can only be secured in the long term through profound reforms in energy, labor and bureaucratic costs as well as a strategic raw materials and trade policy,” said Franz. Commission President Ursula von der Leyen announced a continuation of the dialogue with the automotive industry for next June.