EU leaders must “act now” to safeguard automotive industry
22 Jan 2025
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ACEA president calls for urgent action to prevent "irreparable damage" to competitiveness of European vehicle makers
Brussels – European Union leaders have been urged to take ‘urgent action’ to help the automotive sector in its decarbonisation transition while protecting its competitiveness.
Newly appointed ACEA* president Ola Kaellenius said the sector faces serious challenges around global competitiveness, geopolitical tensions, and a “more complex than anticipated” transformation towards zero-emission mobility.
In a 16 Jan letter to Europe's political leaders, Kaellenius called for a “realistic pathway” to decarbonising the automotive industry via a strategy that is “market-driven, not penalty-driven.”
In particular, the ACEA president urged EU leaders to find a solution to the “disproportionate costs of compliance” with the 2025 CO2 target for cars and vans.
His letter went on to ask EU leaders to develop “a regulatory framework” that enhances the competitiveness of the European industries, as recommended by the Draghi report. (ERJ report)
“The European Green Deal must be subject to a reality check and a realignment – to make it less rigid, more flexible,” said the ACEA president and CEO of Mercedes-Benz.
Citing provisional figures for 2024, Kaellenius said demand for new electric vehicles fell 6% year-on-year las year.
Market share is also on a downward slope: declining by 1% to 13.6% – a trend, said Kaellenius, was “far from the sharp increase needed to meet stringent CO2 targets in the coming years.”
* European Automobile Manufacturers’ Association
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