The French Minister Delegate for Industry, Marc Ferracci, calls for the introduction of measures “emergency” to save Europe's struggling carmakers, including deferring the hefty fines they are likely to face next year.
Visiting his German counterparts in Berlin this Tuesday, November 5, Marc Ferracci urged European political decision-makers to tackle the “urgent questions” concerning the automotive industry, including increasing demand for electric cars, ensuring a level playing field with China and deferring financial penalties.
“The Commission should consider deferring fines that could be paid by car manufacturers under the [des normes sur le CO2 pour les voitures] »he told journalists in Berlin, after a meeting with Bernhard Kluttig, director general for industrial policy at the German Federal Ministry for the Economy and Climate Protection.
Based on current EU emissions reduction targets, European manufacturers must increase the proportion of electric vehicles in their fleet in order to gradually reach 100% carbon neutral technology by 2035. Current regulations requires them to reduce their emissions by 15% by 2025, failing which they will be exposed to substantial fines.
However, faced with falling demand for electric vehicles (EV) and growing competition from China, European producers claim they cannot meet the CO2 emissions reduction targets imposed by the EU due to “significant gaps” in EV charging infrastructure and battery supply chains, as well as weak consumer demand.
Indeed, due to the lower than expected number of electric car sales – which translates into a heavy dependence on traditional combustion engine cars – car manufacturers risk being fined up to 17 billion euros. . For their part, environmental advocates insist that the industry would be able to meet the target if it focused its efforts on marketing and product development.
The German coalition on the verge of implosion?
German Chancellor Olaf Scholz will hold meetings with his two coalition partners to find common ground amid rumors of an imminent collapse of the coalition as leaders presented conflicting plans to turn around the economy in difficulty in the country.
France, the Czech Republic and Italy ready to mobilize for the automobile industry
This weekend, car-producing countries the Czech Republic and Italy announced they would seek a deferral of the fines when they meet with other European leaders in Budapest this Friday, November 8.
While the Czech Republic and Italy also hope that auto giant Germany will join their call, Bernhard Kluttig said there was no final position yet within the German government on how to manage fines on CO2 emissions, but noted that he wanted to maintain CO2 targets and help the industry deal with the situation.
Marc Ferracci, for his part, called for the development of measures at European level to help consumers buy an electric car. “We will propose measures in the coming weeks to support demand in the automobile and steel industries”he said.
In Germany, last week's announcement of potential mass layoffs and factory closures for Europe's largest automaker, Volkswagen, reinforced fears of an irreversible process of deindustrialization — which industry representatives say , has already started.
Last year, Berlin scrapped a consumer aid program due to the state budget crisis, sending sales of electric cars plummeting.
If the largest of the three parties in the ruling coalition — Olaf Scholz's Social Democrats (SPD, S&D) — wants to reintroduce this program, it seems unlikely as government leaders are already struggling to close a budget deficit that is is widened due to the deterioration of the country's economic growth prospects.
A meeting of German coalition leaders is scheduled for Wednesday, November 6 to try to resolve the ongoing political crisis.
[Édité par Anna Martino]
