European Sales of internal combustion motor cars and electric cars also stagnate. This would mean that investors patiently expect the economic cycle for general service to resume. But the European Union has imposed sales fees on electric cars and if not fulfilled, the industry can face fines of up to 15 billion euros ($ 16. 6 billion). The authors need relief.
Investors wonder if electric cars sales increase again. If they do, China will consume European competition? If European electric car sales maintain the speed of the European Union orders, will the EU dilute the regulations and save its national industry, even if it will undermine its CO2 emission strategy designed to combat the risk of climate change?
EV sales are coming back soon, only because regulations insist they’re increasingly replacing ice vehicle sales. But the consultation is being considered with more urgency; Is this preference to ban the sale of all new ice cars through 2035 in the climate call seriously replace thinking as if it cripples Europe’s flagship industry?
“The EU insists that electric cars represent only about 20% of sales this year, emerging sharply to about 80% to 2030 and one hundred percent to 2035. And European profitability will be destroyed.
Industry leaders and politicians are the alarm.
Automobile battery recycling
The Renault CEO and president of the Renault Automobile Manufacturers Association (ACEA), Luca de Meo, said the automotive industry can face fines of € 15 billion if sales of electric vehicles remain at existing levels.
“The speed of the electric ramp-up is part of what we would like to meet the targets that would allow us to pay fines,” De Meo said, according to Automotive News Europe.
Volkswagen President Hans Dieter Poetsch needs the EU to give the automotive industry more time to CO2 targets.
According to Acea, EV sales in the EU in July fell 10. 8% to 103,000, with the market percentage that emerged to 12. 1% from 13. 5% annually before. From January to July, 815,000 new electric cars used to be a percentage of market place of 12. 5%.
Italian government officials have called to modify CO2 emissions rules. They need the programmed examination for 2026 that will be presented next year, when a giant impediment will have to be completed. The purpose of next year is disturbing for Volkswagen.
Italian industry minister Adolfo Urso said the European industry would give in action.
Acea needs a 2 -year retention in the target target of 2025. Cea, according to a report through Bloomberg, said that if the regulations will be replaced by around 2 million cars, or if the industry will threaten up to € 13 billion ($ 14. 4 billion).
ACEA president and Renault CEO Luca de Meo (Photo by LAURIE DIEFFEMBACQ/BELGA MAG/AFP via Getty … [+] Images)
Green Lobby Group Green Lobby Group, founded in Brussels, said the EU will have to reject the “absurd demands of car manufacturers” to maintain emissions.
Jefferies investment researcher thinks that significant adjustments in EU regulations are probably and this can cause problems.
“The scope of regulatory mercy is low, which may lead to restructuring,” Jefferies said in a report.
Bank Berenberg of Germany summed up.
“The confirmed slowdown in electric vehicle momentum, a firmly reversed price tailwind, softening demand and persisting challenges from China are adding to the macro, political (trade tensions) and regulatory (CO2 emission) uncertainties, Berenberg Bank said.
GlobalData has been relentlessly cutting its sales forecast for Western Europe. Four months ago it was forecasting just under 5% growth. Its latest forecast says there will be a slight contraction with sales falling 0.4% compared with last year, as the total peaks out at 11.51 million.
Western Europe includes the five biggest markets Germany, France, Britain, Italy and Spain.
As the European market becomes more difficult, analysts point out the maximum vulnerable and maximum productive brands supplied to the storm.
Jefferies said Stellantis is more productive and worse, even if he acknowledges that judgment is ill-timed at this level given the giant number of variable and tactical levers that will be retired in 2025.
“VW is the maximum challenged by emissions, with an annoying threat for its length with fines. Stellantis and Renault obtain advantages of new regulations on mass calculation, while Mercedes and Porsche face the greatest obstacles. Mass calculation settings are not enough to derail early and normal BMW efforts in CO2 reduction. All Toyota’s hybrid strategy can succeed in its limits, with the desire to accumulate the penetration of plug -in vehicles, “Jefferies said.
Berenberg Bank, which said CO2 regulations pose transparent dangers to VW, said the lack of electric cars in Europe is holding back sales.
“This gradually deserves with many characteristics at a value of less than € 25,000 ($ 27,700) that reach the market market until the end of this year and in 2025. 8 to 12 problems in 2025 to avoid CO2, connected sanctions” said Berenberg Bank.
“We believe that EV costs may face greater stress in 2025. The more productive momentum for BMW EV sales and Renault’s affordable EV launches make them relatively older, positioned,” the bank said.
The hole between the EU’s ambition and the manufacturer’s truth proves too big to bend and demands the appearance of an EV at a point of fact priced at €10,000 ($11,100) than €25,000. Dacia in China Spring is getting closer, while in China, the Gaavulla Byd and Wuling Bingo are looking like the concept can work.
Financial Times’s lex column sees many reasons for optimism.
“Cheap European EVs, meanwhile, remain a far-off dream. This limbo affects consumers, too, who may be putting off buying a new car until the fog clears. It is hard to see how European carmakers can thrive while the market is in a muddle. And when EVs do finally resume their growth path – as seems inevitable – they will have to grapple with margin dilutive sales and fierce competition. The sector’s path looks anything but smooth,” Lex said.
A community. Many voices. Create a lazy account to pry your thoughts.
Our network is about connecting other people through open and thoughtful conversations. We need our readers to make their revisions and exchange concepts and facts in one space.
To do this, follow the publication regulations the situations of use of our site. We have summarized some of those key regulations below. In other words, keep it civil.
Your post will be rejected if we notice that it seems to contain:
The user accounts will block if we realize or that users are compromised:
So how can you be a difficult user?
Thanks for reading our network directives. Read the complete list of publication regulations discovered the situations of use of our site.