‘Absurd’ car industry demands the EU triggers crisis clause

EU lawmakers must reject the absurd demands of car manufacturers to invoke a crisis clause to delay emissions targets, Transport & Environment (T&E) has said. In a leaked paper, the European car industry association ACEA calls on the EU Commission to resort to Article 122 in the EU treaties – last used for the Ukraine war and the Covid pandemic – to delay the 2025 car CO2 targets by two years.

Julia Poliscanova, senior director for vehicles and emobility supply chains at T&E, said: “This is cynical and absurd. Carmakers made over €130 billion in profits in the last two years and had years to prepare for the target. Now they want the EU to declare a state of emergency so they can continue selling dirty cars and making large profits. This is not a war or a pandemic, but a self serving stunt.”

Manufacturers have called for flexibility over the EU CO2 standard, which became law in 2019 and gives them until the end of 2025 to comply. Some carmakers are already compliant while the others have clear paths to meet their targets by the end of next year, analysis shows. Manufacturers can comply by increasing sales of battery electric and hybrid vehicles next year. BEV sales will be boosted by seven new models priced below €25,000 arriving still this year and in 2025.

Europe’s six biggest carmakers made €130 billion in profit between 2022-2023, according to Automotive News Europe. Yet the average EV price in Europe has increased by a third since 2021 while it has halved in China. Battery minerals prices have plunged and battery cells are sold at massive discounts.