EC plans to make EU carmakers more competitive

Automotive manufacturers in the EU might be getting a reprieve. The European Commission plans to delay CO2 targets and encourage an autonomous vehicle push. It’s all part of a plan to make the industry more competitive.

EC president, Ursula von der Leyen, made these announcements ahead of the release of its Future of the Automotive Industry bill.

The main pledge is to make CO2 targets more fluid and flexible to help struggling car makers. However, it should not impact those that embraced electrification earlier.

The targets, which measure a car maker’s average fleet CO2 levels, will become stricter annually out to 2035 with fines for those who miss targets.

However, von der Leyen said balance is needed. “On the one hand, we need predictability and fairness for first movers… so we have to stick to the agreed targets. On the other, we need to listen to the voices of the stakeholders that ask for more pragmatism in these difficult times.”

Therefore, the Commission will ask that the targets change from annual compliance to compliance in three years. The targets won’t change and will still need to be fulfilled.

But it allows “more breathing space for industry and more clarity”, said von der Leyen.

The Commission also wants to make the EU a key player in the race towards autonomous vehicles.

It will establish an “industry alliance” where European car makers can pool resources to create shared software, computer chips and autonomous driving technology.

“We need a big push in software and hardware for autonomous driving,” said von der Leyen, adding that the Commission will “refine the testing and deployment rules” and “help launch large-scale pilots for autonomous driving”.

“We have to get autonomous vehicles on Europe’s roads faster.”

The EC also wants less reliance on EV batteries coming from outside the EU.

“We see that imported batteries are cheaper. We cannot let EVs become more expensive.”

The EC will therefore “explore direct support for EU battery producers”. It will slowly introduce “European content requirements” for battery cells and components.

Von der Leyen added “Today was not the end of the dialogue with the automotive industry. There is more to come.”