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 are wondering if electric car sales are rising again. If they do, will China consume European competition? If European sales of electric cars keep up with the speed of European Union orders, will the EU water down regulations and save its domestic industry, even if it undermines its CO2 emission strategy designed to combat climate change risk?
EV sales are certain to lift off again soon, simply because the regulations insist they increasingly replace sales of ICE vehicles. But the question is being asked with more urgency; can this drive to ban the sale of all new ICE vehicles by 2035 in the name of climate change be seriously contemplated 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 sounding the alarm.
Automobile battery recycling
Renault CEO and president of the Renault Automobile Manufacturers’ Association (ACEA), Luca de Meo, said the auto industry may incur fines of 15 billion euros if sales of electric cars remain at existing levels.
“The speed of the electric ramp-up is half of what we would need to achieve the objectives that would allow us not to pay fines,” de Meo said, according to Automotive News Europe.
Volkswagen President Hans Dieter Poetsch, the EU, will give the car industry more time to meet 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 for the CO2 emissions rules to be changed. They want the review scheduled for 2026 brought forward to next year, when a big hurdle needs to be met. Next year’s target is especially troubling for Volkswagen.
Italian Industry Minister Adolfo Urso said European industry would give in to action.
ACEA wants a 2-year delay in 2025’s tightened CO2 target. ACEA, according to a report by Bloomberg, said if the rules aren’t changed about 2 million cars won’t be produced, or the industry will face fines of 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 needs of car manufacturers” to maintain emission targets.
Investment researcher Jefferies doesn’t think meaningful changes in the EU rules are likely and that could lead to problems.
“The scope of regulatory clemency is small, which can lead to restructuring,” Jefferies said in a report.
The Bank of Germany of Germany summarized like this.
“The deceleration showed in the impulse of the vehicles, a firmly inverted price, a softening of the call and demanding persistent situations of China uploading to macro, policies (commercial tensions) and regulator (CO2 issuance), CO2 emissions) . Berenberg Bank said.
Globaldata has tirelessly lowered its sales forecasts for Western Europe. Four months ago, it predicted expansion of just under 5%. Its most recent forecasts imply that there will be a slight contraction with sales by 0. 4% until last year, because the general one decreases to 11. 51 million.
Western Europe includes the largest markets of Germany, France, Great 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 that Stellantis is more productive and VW the worst, recognizes that the trial is inopportune at this level given the giant number of variable and tactical levers from which they will be eliminated in 2025.
“VW is the most challenged on emissions, with risk compounded by its size in the event of fines. Stellantis and Renault benefit from new rules on mass calculation while Mercedes and Porsche face the biggest hurdles. Changes in mass calculation are probably not enough to derail BMW’s early and steady efforts on CO2 reduction. Toyota’s full hybrid strategy may reach its limits, with a need to step up 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.
“EV’s costs would possibly face greater tension in 2025. The relative impulse of BMW EV sales and well -signed EV launches of Renault make them relatively higher positioned,” the bank said.
The hole between the EU ambition and the truth of the manufacturer is too vital to bend and requires the appearance of an EV affordable at a value of € 10,000 ($ 11,100) only € 25,000. Dacia in China in China in China in China is closer, while in China, Byd Seagull and Wuling Bingo show that the concept can work.
Financial Times’s lex column sees many reasons for optimism.
“Cheap European electric cars, on the other hand, are still a remote dream. This limbo also affects consumers who can resume the purchase of a new car until the fog breaks. It is difficult to see how European car brands can Prospe while the market is in confusion. And when electric cars even though everything returns to their trace of expansion, as is inevitable, they will have to deal with dilutive sales and a fierce competition.
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