At the first meeting of the strategic dialogue on the future of the European automotive industry, the German Association of the Automotive Industry (VDA) is calling for more flexibility in EU fleet regulation. In addition to focusing on the urgently needed offensive concerning framework conditions, it is crucial for the industry that fines are avoided in order not to further restrict companies’ investment opportunities.
“The automotive industry is firmly committed to the Paris climate goals and is continuing to drive forward the rapid ramp-up of electromobility. From 2025 to 2029 alone, our companies will invest around €320bn in research and development. In addition, there will be around €220bn in capital expenditure, particularly in factories. This means that the investments of the German automotive industry will increase significantly once again,” VDA President Müller explained.
“With regard to CO2 fleet regulation, however, it is becoming increasingly clear that there is an urgent need for action in view of the diverse global and trade policy challenges, the still inadequate framework conditions and the currently sluggish demand for electric cars. This need for action affects not only the automotive industry, but also politics and other stakeholders,” Müller said.
Thus the VDA demands:
- The reviews of the two regulations for passenger cars and commercial vehicles should be brought forward to 2025 and progress should be regularly reviewed politically. Only on this basis it can be ensured that the urgently needed adjustments to the framework conditions are made.
- In order to avoid additional burdens on industry in the current crisis and to avoid further restricting companies’ investment opportunities, the EU Commission must also act quickly and send a clear signal that it will create the flexibility necessary to achieve the goals.
Flexibilization required now
In concrete terms, the main aim is to avoid possible fines based on the target values tightened this year – through a phase-in that has already proven successful in the course of the last tightening of the CO2 regulation targets. This measure enables manufacturers to make a feasible start to their tightened fleet targets by exempting a certain percentage of newly registered vehicles from the fleet regulation in the first two years. This instrument should sensibly be applied analogously to the planned further tightening of the targets in 2030 and 2035.
“In any case, in the current crisis situation, additional burdens in the form of fines must be avoided in order not to jeopardize investments in the transformation of the automotive industry, the ramp-up of e-mobility and the digital networking of vehicles,” Müller emphasized.
Concerning technological openness, the VDA is also calling for further adjustments to the regulations to help achieve climate targets and develop solutions for different regions and challenges. These include strengthening the role of plug-in hybrids beyond 2035, suspending the planned adjustment of the utility factor from 2025, and giving greater consideration to the CO2-reducing effect of renewable fuels. In addition, renewable fuels play an important role with regard to the necessary creation of a “Carbon Neutral Fuels-only” vehicle category, ensuring combustion engines are immediately classified as 0g vehicles that are verifiably and exclusively operated with CO2-neutral fuels.
Focus on framework conditions
One thing is clear: The target values for fleet regulation in 2030 and 2035 can only be achieved if the enormous lack of supporting framework conditions can be overcome and the location conditions can be made significantly and sustainably more competitive. It is becoming increasingly clear that the complexity of the overall system was underestimated when setting the fleet limits. In concrete terms: it is not enough to build electric cars; consumer confidence must also be strengthened at the same time, in particular through a suitable charging infrastructure.
“Politics is more than setting ambitious goals. Politics also means enabling to achieve them – this principle has recently been neglected in Berlin and Brussels,” Müller said.
Based on the first review, which should ideally take place this year, progress should be regularly reviewed in subsequent years to ensure that the necessary framework conditions meet the level of ambition of the 2030 and 2035 targets.
“Necessary progress must be monitored, especially in the areas of infrastructure and energy, and in particular in the expansion of the charging and H2 tank infrastructure, electricity price developments, electricity grid expansion and renewable energies. Key parameters in the area of value chains and raw materials, including semiconductor supply and battery production, must also be reviewed. There is enormous catching up to do in all of these areas. A turnaround in this trend will only be achieved with a comprehensive strategy for competitiveness and location attractiveness,” Müller said.
The EU compass on competitiveness presented on Wednesday does not yet introduce the necessary measures in these crucial areas, or does not do so sufficiently. “Although we are looking at how the far too high energy prices can be reduced, at the same time it is important to underpin the announcements with regard to the expansion of the electricity grids and the hydrogen infrastructure with concrete measures and goals.”
The urgent appeal to bring forward the review processes for the CO2 fleet limits to 2025 in order to make appropriate adjustments based on the findings is also incomprehensibly not taken up. Nor are technologies such as batteries and fuel cells mentioned in the entire report – future fields in which there is an acute need to catch up. “Especially in view of the importance of these technologies for decarbonization and the associated economic opportunities for the automotive industry and the EU economy as a whole, improvements must be made here,” Müller demanded.
SOURCE: VDA
