Workers at a Volkswagen electric vehicle facility in Hefei, China were busy on September 25, 2024, as Europe’s major automakers grapple with potential fines due to lagging electric vehicle (EV) demand and stringent EU emission regulations. Starting next year, the EU will lower its cap on average vehicle emissions to 93.6 grams of CO2 per kilometer, a 15% reduction from 2021 levels. Non-compliance could mean steep financial penalties, with Renault CEO Luca de Meo forecasting a potential €15 billion hit for the industry if EV sales don’t increase. The European Automobile Manufacturers’ Association (ACEA) urges the EU for urgent relief measures citing unaccounted shifts in geopolitical climates and the struggle to meet 2025 targets. Meanwhile, the European Commission maintains there’s still time to adjust. Automakers like Volkswagen and Ford are delaying plans to phase out internal combustion engines, focusing on more profitable models amid a decline in EV market share and economic challenges. While some see this as a crisis, others, like Transport & Environment, view it as a transitional phase requiring manufacturers to adapt and perhaps sell fewer polluting SUVs. Road transport remains a major CO2 contributor in the EU, demanding swift industry adjustments to achieve climate goals.
Original Story https://www.cnbc.com/2024/10/03/auto-giants-are-getting-nervous-about-the-prospect-of-massive-fines.html
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