The European Union’s proposed Euro 7 emission rules have come under fire from the European Automobile Manufacturers’ Association (ACEA), which claims that the new regulations will bring about greater complexity and uncertainty to the auto industry.
The industry lobby group further argues that the Euro 7 regulations will result in a significant rise in new car prices, without bringing any intended environmental benefits.
Proposed Euro 7 emission rules
The Euro 7 emission rules propose to tighten limits on car emissions of pollutants, including nitrogen oxides. The proposal is currently being negotiated by EU countries and lawmakers.
The ACEA’s Director General, Sigrid de Vries, argues that the draft law is an example of a regulation that will add complexity and uncertainty to the industry.
The proposed regulations would require significant investments from automakers.
Some carmakers have voiced concerns that Euro 7 would force them to invest in technology for combustion engine models when they have already allocated tens of billions of euros for new zero-emission electric vehicles (EVs).
The ACEA argues that the Euro 7 regulations would further exacerbate the asymmetrical challenge faced by European vehicle manufacturers. According to ACEA President and Renault CEO Luca de Meo, they will no longer be leaders in the technological race.
The ACEA argues that as purchase incentives for zero-emission vehicles wane in the EU, competitors in China and the US are receiving massive support. This places European vehicle manufacturers at a competitive disadvantage.
Environmental benefits of Euro 7
Also, the ACEA argues that the Euro 7 regulations will not bring about the intended environmental benefits. According to de Vries, the new regulations would bring only a marginal improvement over current standards.
The ACEA further argues that the regulations would raise the average new car price by €2,000 ($2,150). This would force many people to keep older polluting models instead of buying new vehicles.
Impact on employment
The impact of the proposed regulations on employment has also come under scrutiny. An executive at Volkswagen unit Skoda has warned that the Czech carmaker would have to cut 3,000 jobs if Euro 7 is implemented in its current form. The ACEA has called for greater support, including European subsidies for EVs, ahead of this week’s European Council Summit on competitiveness.
Germany, Europe’s leading car-making nation, has upset separate negotiations on phasing out fossil fuel vehicles by 2035 with a last-minute objection. This has added to the complexity and uncertainty faced by the auto industry. German auto industry is one of the major employers in the country.
Euro 7 pros and cons
The Euro 7 emission rules proposed by the European Union have come under fire from the auto industry lobby group ACEA, which argues that the regulations will result in greater complexity and uncertainty for the industry.
The group also claims that the regulations will raise new car prices without bringing any intended environmental benefits.
The impact on employment has also come under scrutiny, with one carmaker warning of potential job cuts.
The ACEA has called for greater support, including European subsidies for EVs, to address the asymmetrical challenge faced by European vehicle manufacturers.