The European car industry is facing mounting pressure from stricter European Union regulations, intensifying global competition and ongoing sector transformation. As a cornerstone of the EU's economy, the sector needs support through swift political action.
Transportation is a major source of emissions in Europe and that needs to be addressed. But this should not come at the expense of car manufacturers and their suppliers, which provide many well-paid and highly skilled jobs across the EU.
Weakening ambitious climate targets is not an option; we need a carbon-neutral transport system. But the EU stands alone in its exclusive focus on e-mobility, while other regions embrace a broader mix of technologies. The challenge is finding the right balance between economic, environmental and social priorities.
Imposing mandatory electric vehicle (EV) quotas alone is not the right approach. Bans and quotas do not drive real progress; innovation does. Instead of rigid mandates, the EU must adopt market-driven and technology-neutral solutions that foster competition and offer consumers real choices.
Rather than further increasing EV quotas, we should reinforce our commitment to technological neutrality in all relevant EU legislation. This would encourage companies to invest in the most effective climate-friendly means of transport.
The EU’s strict regulations currently hinder companies’ efforts to develop sustainable solutions. The requirement to drastically reduce fleet emissions by 2025, on pain of heavy penalties, places too great a burden on companies and takes away the space they need to innovate.
EU legislation should support companies through the transition rather than imposing excessive restrictions. A strong economy with competitive businesses is essential for advancing sustainable mobility.
Adapting fleet targets by calculating the average performance over a three-year period, as outlined in the EU’s Industrial Action Plan for the European automotive sector, is a step in the right direction toward strengthening the competitiveness of the European car industry.
This is not about weakening climate targets; it is about ensuring car manufacturers have the necessary flexibility and time to meet requirements without unnecessary penalties or competitive disadvantages, while sticking to the targets.
A truly sustainable mobility strategy must look beyond vehicle mandates and address the broader economic requirements of the transition. We currently lack essential factors for the success of e-mobility, such as charging infrastructure, affordable energy and a stable raw material supply.
Developing a resilient European market for CO2-neutral fuels could allow us to utilise existing infrastructure and combustion engine technology rather than overhauling the entire system. Addressing these challenges is crucial for earning consumer trust and ensuring a practical transition to sustainable mobility.
Electric vehicles will play a key role in this transition, but subdued sales figures suggest that rigid quotas are not the right approach. Instead of imposing mandates, we must address fundamental issues such as the lack of charging stations and high energy costs – the real barriers to widespread EV adoption and sustainable mobility in the EU.
It is essential to reduce dependence on non-EU countries for raw materials needed in battery production and to establish secure, resilient supply chains, which are currently insufficient.
For a sustainable transition, the EU needs a policy shift that integrates economic and environmental priorities. The future of mobility depends on a market-based approach. We need technological openness and innovation, not bans and quotas.
By fostering competition and supporting a diverse range of sustainable solutions, we can achieve economic growth and climate goals without compromising one for the other.
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