ACEA urges “course correction” ahead of EU automotive package

Brussels – The European Automobile Manufacturers’ Association (ACEA) has called for a “smarter, more pragmatic approach” to EU vehicle policy, warning that the current regulatory framework risks undermining the bloc’s electrification agenda.

In a 1 Dec statement ahead of the European Commission’s automotive package – due 10 Dec – ACEA director-general Sigrid de Vries said the industry was not seeking a return to internal combustion engines.

“The answer is a simple ‘no’,” she said, noting that electrification “is set to lead the charge in future mobility”.

Citing International Energy Agency data, de Vries said one in four new cars sold globally is now electric, with the share expected to exceed 40% by 2030.

ACEA members, she stressed, already offer “more than 300 electrified models in the EU”, backed by “hundreds of billions of euros” in investment.

However, she warned that “the European home market hasn’t recovered from pre-Covid levels”, with around three million cars missing from annual sales since 2020.

At the same time, “EU governments and regulators have not invested in, nor demanded, sufficient levels of infrastructure and grid upgrades”.

With inconsistent incentives and regional disparities, she said the bloc’s 2030 and 2035 CO2 targets for cars and vans are ‘no longer realistic’.

De Vries outlined five recommendations for the upcoming EU package:

A differentiated approach for cars, vans and trucks

De Vries said the pace of the transition is not the same for every vehicle segment, noting that cars, vans and heavy-duty vehicles operate under “completely different conditions”.

She argued that commercial vehicles in particular cannot be treated like passenger cars, as adoption decisions in that segment are almost entirely driven by total cost of ownership.

Vans, she said, “are the workhorses of Europe”. Used mainly by SMEs, they are “essential tools” that enable deliveries, repairs, construction and public services.

For this reason, she insisted that vans “need an even broader set of flexibilities than passenger cars”, including an adjustment of their CO2-reduction targets.

For trucks and buses, she called for an “accelerated review” of the heavy-duty CO2 Regulation, warning that current targets do not reflect the complex interdependencies of logistics chains.

Short-term measures, she said, are needed “to prevent penalties caused by factors beyond manufacturers’ control”.

A flexible and technology-open CO2 reduction framework

De Vries criticised the current policy framework for focusing “almost exclusively on supply”, saying it places the entire burden on manufacturers while doing “far too little to spark real demand”.

She argued that car and van makers need regulatory flexibilities to avoid “multi-billion-euro penalties”, especially given the “missing infrastructure, inconsistent incentives and slow grid upgrades”.

She stressed that no drivetrain capable of operating on renewable energy should be ruled out — whether plug-in hybrids, range extenders or hydrogen fuel-cell powertrains — “if they can genuinely contribute to decarbonisation”.

She also suggested allowing manufacturers to compensate residual emissions through other means, for example rewarding the use of 'green steel, aluminium or batteries'.

Measures such as faster fleet renewal could have a major impact, she emphasised, noting that 30% of all cars on EU roads are older than 20 years, and that each new vehicle replacing an old one “can save 6 to 12 tonnes of CO2”.

A stronger focus on demand-stimulus measures

De Vries said customer decisions are fundamentally driven by “price, taxation, electricity cost and convenience”. For this reason, stimulating demand must remain a top priority.

Corporate fleets, she suggested, could act as a “flywheel” to accelerate adoption. For cars and vans, she emphasised that “incentives should be prioritised over binding mandates”, stressing how national fiscal incentives have already proven effective across Europe.

Heavy-duty vehicles require a “different recipe”, she said.

Here, de Vries called on shippers and major transport buyers to play a more active role by “progressively increasing the share of shipments handled by zero-emission trucks”.

Public authorities, she added, should “lead by example” by prioritising zero-emission vehicles in all their procurement.

Finally, she warned that charging and refilling infrastructure remains “a major barrier”, creating a “three-speed Europe” in which uptake varies widely because regional infrastructure is developing at radically different paces.

A cautious, realistic approach to ‘Made in Europe’ requirements

While emphasising the sector’s economic weight — 2.5 million jobs, 7.5% of EU GDP and the EU’s largest private R&D investor — de Vries warned against simplistic assumptions about localisation.

“Our supply chains are global and incredibly complex,” she said, and any local-content requirements “must be phased in gradually”, with sufficient lead time and differentiation across segments.

Requirements should rely on “smart incentives” rather than rigid mandates, and must respect trade rules and international partners.

She also highlighted the fundamentals of competitiveness: “affordable energy, faster permitting, skilled workers, and viable conditions for battery manufacturing”.

Local production will thrive, she said, “only if Europe remains an attractive place to invest”.

A bolder drive for regulatory simplification

De Vries said the Automotive Omnibus is “a welcome step”, but more must be done given the “more than one hundred legislative acts” expected over the next five years — all of which will affect design, development, manufacturing and investment cycles.

She welcomed Commission president von der Leyen’s commitment to revive small, affordable car production in Europe, noting that regulatory simplification would have its “greatest impact” in this segment.

She also called for “a more staggered implementation” of legislation to reflect industrial reality, highlighting truck makers’ request to postpone elements of Euro 7.

“In an industry with long development cycles,” she said, “legislative timelines must reflect industrial and market realities”. Without this, Europe risks undermining its own competitiveness.

De Vries concluded that the sector remains a “cornerstone of the continent’s economy”, but warned that “leadership cannot live on political ambition alone”.

A policy “course correction”, she said, is now essential: “The Commission’s upcoming package is an important moment of truth.”