Paul Perera’s Post

Auto giants are feeling the pressure as they face the possibility of hefty fines due to potential non-compliance with upcoming European Union (EU) emission regulations. The EU has set ambitious targets aimed at reducing carbon emissions from new cars by 55% compared to 2021 levels by the year 2030. Furthermore, the EU aims to achieve […]

Auto giants are feeling the pressure as they face the possibility of hefty fines due to potential non-compliance with upcoming European Union (EU) emission regulations. The EU has set ambitious targets aimed at reducing carbon emissions from new cars by 55% compared to 2021 levels by the year 2030. Furthermore, the EU aims to achieve […]

The European Commission remains unaltered in its commitment to current CO2 emissions reduction policies for cars, despite mounting pressure from the European People's Party (EPP), the EU’s largest political group. Climate policy chief Wopke Hoekstra confirmed the Commission's position during an industry event in Brussels, asserting that no changes to the regulations are being considered.  The EPP has launched a campaign advocating for the relaxation of emissions rules, citing the automotive sector’s struggles with weak demand, increasing Chinese competition, and lower-than-expected sales of electric vehicles (EVs). European automakers face potential fines of up to €15 billion for failing to meet 2025 CO2 targets, a liability that could divert resources from crucial investments in the EV transition.  The EPP has proposed a three-year averaging mechanism for automakers to comply with emissions targets. This would allow companies to miss 2025 benchmarks without incurring fines, provided they meet cumulative targets by 2027. However, Hoekstra dismissed these proposals, emphasizing that the current rules provide a stable investment environment and are essential for achieving Europe’s legally binding climate goals.  While the automotive industry contends that stricter regulations exacerbate financial strains and jeopardize jobs, the European Commission maintains that such policies are critical for long-term sustainability and competitiveness. This tension underscores the broader challenges Europe faces in balancing economic pressures with its ambitious environmental objectives.  https://lnkd.in/d8XTYmKU #automotiveindustry #electricvehicles #china #europe Tesla BYD MG Motor Europe SEAT S.A. CUPRA Mercedes-Benz AG BMW Group Ford Motor Company Volkswagen Group Stellantis Renault Group

Will this be the year of carbon pools? I remember it like it was yesterday—when I started working in the maritime industry four years ago, I immediately applied the logic of similarity to anticipate potential regulations that existed in other sectors. In meetings with shipowners, as well as with centers specializing in the decarbonization of the maritime sector or political associations, I frequently referenced the automotive industry and its incentive systems (somehow similar to the fuelEu maritime pooling). In 2021, #FuelEUMaritime was probably not even on the radar of European legislators; seven days ago, this controversial European regulation came into force, once again highlighting the superficiality of those who designed and approved it. FuelEU Maritime will bring disruption and inconveniences that could have been avoided with a bit of common sense. I won’t dwell here on how it will work or what impact it will have on the sector alongside the #EUETS system. One thing is certain: with one year of maritime ETS already concluded, it is clear that the maritime sector operates entirely differently from other manufacturing or automotive industries. The implications between different legal and commercial entities have made the bureaucracy extremely complex, as well as the purchase of #EUA allowances and now in mechanisms to comply with FuelEU (borrowing, pooling…) significantly more challenging. It is imperative that, in the next EU revision, changes are made to the current systems—or perhaps, why not, its total abolition in exchange for a global IMO system/strategy/transition that is more homogeneous for the sector.

The European #automotiveindustry is at a critical juncture. With stringent CO2 emission regulations set to shape the future of car and van production, EU car and van #manufacturers are calling for decisive action before the end of 2024. The reason is clear: failure to align regulations with market realities risks undermining the competitiveness of Europe's automotive sector and putting thousands of jobs at risk. The current CO2 targets, while ambitious and necessary for environmental progress, must also consider economic and technological feasibility. The automotive industry is already heavily investing in electrification, sustainable mobility solutions, and innovative technologies. However, regulatory clarity and a realistic framework are essential to maintaining Europe’s global leadership in automotive manufacturing. Without prompt adjustments, the risk of production moving outside Europe grows, impacting not only manufacturers but also the vast network of suppliers and service providers that rely on a stable #automotive ecosystem. Policymakers and industry leaders must work collaboratively to strike a balance between sustainability goals and economic viability. Clear, predictable, and achievable CO2 rules will ensure continued innovation, job security, and a strong European presence in the global automotive market. The time to act is now – for the environment, for competitiveness, and for the millions of people whose livelihoods depend on this industry. Interesting article published by European Automobile Manufacturers' Association (ACEA) where you can find more information. https://lnkd.in/dkR_yJaP

🚘 What alternative option do #car makers have to deal with ambitious EU CO2-targets for 2025? Neither seems attractive, but delaying to speed up EV-sales isn't either. Read all about it in this CNBC piece. #carmarket #automotive https://lnkd.in/escnhGKc

Double penalty for the automotive sector: combustion-engine ban by 2035 + CO2 fleet emission targets subject to fines... "We need to talk", says French PFA. BLOOMBERG  The 2035 combustion engine ban could "threaten the European automotive industry in its heart,” BMW CEO Oliver Zipse said.  PARIS -- Europe must cancel its plan to ban new fossil fuel-emitting cars from 2035 to reduce reliance on China's battery supply chain, BMW CEO Oliver Zipse said.  The European Union's plan to ban the sale of combustion-engine cars from 2035 will lead to a "massive shrinking" of its automotive industry, Zipse said.  The plan is no longer realistic because of lower-than-expected EV sales and subsidies for electric vehicles are unsustainable, Zipse said on the sidelines of the Paris auto show on Oct.15.  "A correction of the 100 percent BEV target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs less reliance on China for batteries," he said.  .../... That industry is at risk, especially as carmakers shift to electric models that require fewer and different inputs. The shift is proving a challenge for Europe’s auto industry, which has struggled to cope with the removal of government subsidies and intensifying competition from Chinese EV makers such as BYD Co.    The ban could "threaten the European automotive industry in its heart," Zipse said. The measures will "with today’s assumptions, lead to a massive shrinking of the industry as a whole.”  Italy is leading a call for the 2025 ban to be reviewed, with Prime Minister Giorgia Meloni calling it "self-destructive."  Zipse's home country of Germany has rejected an early review of the targets because of the urgency of tackling climate change.  In Paris, the head of France's auto association PFA stopped short of calling for the 2035 ban to be abolished, but said it was necessary to quickly "come back around the table" to discuss the review of the targets, currently scheduled for 2026.  Tough 2025 goal  Automakers also have near-term obligations to worry about, with the EU tightening fleet-emissions targets next year. If companies fail to sell more EVs, they faces fines of as much as €15 billion ($16.4 billion).  BMW and Mercedes are on track to meet the stricter targets, with Volkswagen, Stellantis and Renault at risk of falling short, according to a recent Bloomberg Intelligence analysis. Companies can buy emissions credits from over-compliant manufacturers such as Tesla to avoid fines.  Industry association ACEA has called on the EU use emergency regulation to delay the 2025 targets by two years. EU rules mandate overall CO2 fleet emission of about 95 grams per kilometer in 2025 — down from 106.6 g/km in 2023.  Bloomberg contributed to this report 

EU Carmakers Push for Emissions Standards Relaxation Rome and Berlin are joining forces to pressure the European Union to ease CO2 emissions standards for cars. This move comes as the EU aims to phase out the sale of new petrol and diesel vehicles by 2035. Italy and Germany are seeking support from other EU member states to reconsider the 2035 ban and relax emissions targets. Italian Industry Minister Adolfo Urso argues that the ban is unlikely to be achieved and proposes an earlier review of the legislation. Manufacturers warn that the current targets are too stringent and could lead to job losses. The European Automobile Manufacturers' Association (ACEA) has called for a postponement of stricter emissions limits, citing a decline in electric car sales and challenges in meeting production and infrastructure goals. The European Commission, however, maintains that the industry has sufficient time to adapt to the current targets. The Commission also notes that the 2025 target was agreed upon in 2019 and that policies have been designed to allow for a gradual transition. The automotive lobby is pushing for a review of the 2035 ban and a potential allowance for synthetic fuels, while other industries, such as battery manufacturers, are advocating for maintaining the current targets. The outcome of this debate will significantly impact the future of the European automotive industry and its transition to electric vehicles. #automotive #eu #crisis #combustion #europeancomission #industry #italy #germany #romania #engineering #acea Source: https://lnkd.in/dtDqUDAw

Is there big changes ahead for Europe's car industry? On 5 March, Brussels will reveal a new ‘action plan’, potentially revising manufacturer fines and updating to the 2035 petrol and diesel ban. Here's what we know so far: https://lnkd.in/eKP6Q-va #fleetmanagement #fleet #fleetmanager #fleetsolutions

Ambitious plans to significantly reduce vehicle emissions by 2032! The Environmental Protection Agency intends to slash tailpipe emissions by almost 50% within that timeframe. While major automakers have expressed support for certain aspects of these regulations, some states have filed lawsuits against the EPA, arguing that the new rules are illegal and impractical. Navigating an ever-changing regulatory landscape related to vehicle emissions can be a complex task for automobile companies. Automobile companies may explore options such as hybrid technology, invest in alternative fuels and advanced emission control systems to reduce tailpipe emissions. #KPMGValueCreation #KPMGDeals #KPMGElevate #EV