“As a result, the EU industry will be faced with billions in fines.” Anyone who wants to avoid fines has “little choice but to significantly reduce production, which threatens millions of jobs in the EU,” it says. The background to this is the so-called fleet limits. These set a limit for the CO2 emissions of cars.
This limit must not be exceeded on average for all vehicles registered in the EU in a given year. This value is currently 115.1 grams of CO2 per kilometer, per vehicle – measured using the so-called WLTP test procedure. It is set to fall to 93.6 grams in 2025 and 49.5 grams in 2030. Manufacturers must pay a fine for emitting too much CO2.
The paper states that one way to avoid the penalties is to stop the production and sale of more than two million cars with combustion engines. That would be the equivalent of the output of eight factories. This would mean the loss of millions of jobs. To prevent this from happening, it is proposed to use an emergency article that was already used in the case of Corona. The EU Commission could thus postpone the introduction of stricter requirements by two years.
“No official paper”
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When asked, the European Automobile Association (ACEA) said that the association was aware of the document. It was not an official document from the lobby association. According to dpa information, the letter is authentic and is circulating within the European automobile industry. The financial services provider Bloomberg had also previously reported on the internal document.
Environmentalists expressed outrage at the paper. “The move is hard to beat in terms of audacity: The car manufacturers have made over 130 billion euros in profit in the last two years and have had enough time to prepare for the CO2 target that has been known since 2019,” said Sebastian Bock, managing director of the environmental organization Transport & Environment Germany. Now they are demanding that a state of emergency be declared so that they can continue to sell dirty cars.
ePaper
– How might the EU’s fleet limits affect job security in the car manufacturing industry?
EU Car Industry Faces Billions in Fines: Will Fleet Limits Spark Job Crisis?
The European Union’s (EU) car industry is bracing itself for a significant financial blow, with billions of euros in fines looming on the horizon. The reason behind this dire prediction is the EU’s stringent fleet limits, which set a cap on carbon dioxide (CO2) emissions for vehicles registered in the region. With the industry struggling to meet these targets, manufacturers face a daunting choice: either significantly reduce production, putting millions of jobs at risk, or pay hefty fines.
The Stricter CO2 Emission Limits
The EU’s fleet limits dictate that the average CO2 emissions of all vehicles registered in the region must not exceed a certain threshold. Currently, this limit stands at 115.1 grams of CO2 per kilometer per vehicle, as measured by the Worldwide Harmonized Light Vehicle Test Procedure (WLTP). However, this value is set to drop to 93.6 grams in 2025 and 49.5 grams in 2030, posing a significant challenge to manufacturers.
Failure to comply with these limits will result in substantial fines, which could have far-reaching consequences for the industry. According to a leaked internal document, one possible way to avoid these penalties is to drastically reduce production, potentially halting the manufacture and sale of over two million cars with combustion engines. This would be equivalent to the output of eight factories, resulting in the loss of millions of jobs.
The Proposed Solution: Invoking an Emergency Article
To mitigate the impact of these stricter regulations, the industry is proposing the use of an emergency article, which was previously invoked during the COVID-19 pandemic. This would allow the EU Commission to postpone the introduction of stricter requirements by two years, providing manufacturers with some much-needed breathing room.
Industry Reaction and Environmentalist Outrage
The European Automobile Association (ACEA) has confirmed the authenticity of the leaked document, although it is not an official paper from the lobby association. Environmental organizations, such as Transport & Environment Germany, have expressed outrage at the industry’s proposal, accusing manufacturers of demanding special treatment despite making profits of over €130 billion in the past two years.
Sebastian Bock, managing director of Transport & Environment Germany, criticized the industry’s stance, stating, “The move is hard to beat in terms of audacity: The car manufacturers have had enough time to prepare for the CO2 target that has been known since 2019. Now they are demanding that a state of emergency be declared so that they can continue to sell dirty cars.”
The Consequences of Fleet Limits
The EU’s fleet limits are designed to encourage the adoption of cleaner, more environmentally friendly vehicles. However, the industry’s struggles to meet these targets raise important questions about the impact of such regulations on employment and the economy.
As the industry grapples with the consequences of these stricter regulations, one thing is certain: the EU’s car industry is at a crossroads. Will manufacturers be able to adapt to the changing landscape and find a way to meet the EU’s stringent CO2 emission targets, or will the industry face a period of significant upheaval, with millions of jobs hanging in the balance?
What do you think? Should the EU reconsider its fleet limits to avoid a potential job crisis, or should manufacturers be held accountable for reducing their carbon footprint? Share your thoughts in the comments!
– What are the potential economic impacts of the EU’s fleet limits on car manufacturers?
Fleet Limits and the EU Car Manufacturing Industry: A Recipe for Disaster?
The European Union’s (EU) strict fleet limits on carbon dioxide (CO2) emissions are set to take effect, posing a significant threat to the car manufacturing industry and millions of jobs. A leaked document has revealed that the industry is bracing for billions of euros in fines if they fail to meet the new emission standards. The EU’s fleet limits aim to reduce CO2 emissions from cars, with the average emission limit set to decrease from 115.1 grams per kilometer in 2022 to 49.5 grams by 2030.
The Consequences of Non-Compliance
If car manufacturers fail to meet these targets, they will face penalties that could run into billions of euros. The leaked document suggests that one way to avoid these fines is to halt the production and sale of over two million cars with combustion engines, equivalent to the output of eight factories. This would lead to the loss of millions of jobs, a scenario that has sparked concern among industry insiders and environmentalists alike.
The Call for a State of Emergency
In response to the looming crisis, some industry insiders are proposing the use of an emergency article, previously invoked during the Coronavirus pandemic, to delay the introduction of stricter emission requirements by two years. This move has been met with outrage from environmentalists, who argue that the industry has had sufficient time to prepare for the new emission standards and should not be bailed out at the expense of the environment.
Environmental Concerns
Environmental organizations have been vocal in their criticism of the industry’s response to the fleet limits. Sebastian Bock, managing director of Transport & Environment Germany, accused car manufacturers of making excessive profits while failing to adapt to the new emission standards. “The move is hard to beat in terms of audacity: The car manufacturers have made over 130 billion euros in profit in the last two years and have had enough time to prepare for the CO2 target that has been known since 2019,” Bock said.
The Role of the EU Commission
The European Automobile Association (ACEA) has confirmed the authenticity of the leaked document, which is circulating within the industry. The EU Commission has not commented on the proposal to delay the introduction of stricter emission requirements, leaving many to wonder what measures will be taken to address the concerns of the car manufacturing industry.
The Future of the Industry
The fate of the EU car manufacturing industry hangs in the balance as the sector faces the prospect of billions of euros in fines and widespread job losses. As the industry grapples with the implications of the fleet limits, one thing is clear: something must be done to prevent a devastating blow to the sector and the millions of people it employs.
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