European automotive industry players are considering asking for a two-year delay in upcoming vehicle emissions standards, according to Bloomberg. The industry cites concerns about potential fines and production cuts. A draft proposal from the European Automobile Manufacturers Association (ACEA), seen by Bloomberg, suggests the industry could face penalties of up to 16 billion euros if it is unable to meet 2025 CO2 emissions targets.
The ACEA document, reported by Bloomberg, proposes using emergency regulation to delay the targets, which require fleet emissions of about 95 grams of CO2 per kilometer. Without an extension, automakers say they may have to halt production of about 2 million vehicles to avoid fines.
Industry leaders attribute the challenges to slow adoption of electric vehicles and competition from foreign manufacturers, Bloomberg reports. The draft states that low consumer demand for electric vehicles has created a crisis for European automakers.
While ACEA has not officially endorsed this position, Bloomberg notes that the proposal highlights growing concerns about the feasibility of meeting near-term emissions targets. The European auto sector continues to struggle with external pressures, including Chinese competition, high energy costs and subdued consumer spending.
As the 2035 ban on sales of new internal combustion engine cars approaches, debates over emissions targets and industry support are likely to intensify. Regulators must balance environmental goals with economic considerations for one of Europe’s most important manufacturing sectors.
Source: Bloomberg
