Cars, European manufacturers call for “Green Deal to undergo reality check and realignment”

Brussels – In a letter to EU leaders, the newly appointed president of the European Automobile Manufacturers’ Association (ACEA), Ola Källenius (CEO of Mercedes-Benz), outlines the automotive industry’s priorities “to ensure future competitiveness and drive decarbonization,” and explains that a thriving European automotive industry is essential to driving economic growth and competitiveness. Källenius laments that the industry faces unprecedented challenges from global competition, geopolitical tensions, and a more complex than expected transformation to zero-emission electric and hydrogen mobility.

ACEA’s president outlines three key priorities: “a realistic pathway to decarbonising the automotive industry, one that is market-driven, and not penalty driven; finding a solution to the disproportionate costs of meeting the 2025 CO2 target for cars and vans; and implementing the recommendations of the Draghi report: creating a regulatory framework that strengthens the competitiveness of European industries; implement recommendations of the Draghi report: create a regulatory framework that enhances the competitiveness of the European industries; promote new approaches to create worldwide, mutually beneficial trade relations for the EU to continue benefiting from free and fair trade.

According to Källenius, ” the European Green Deal must be subject to a reality check and a realignment—to make it less rigid, more flexible and to turn the decarbonisation of the automotive industry into a green and profitable business model.” According to ACEA’s leader, “the EU automotive industry remains committed to the 2050 climate neutrality goal and the transition to zero-emission transport and mobility.”

The industry’s most urgent action now is for the EU to find a solution to ease compliance burdens for cars and vans against the 2025 CO2 target.

“Political action today could not be more critical, as the latest provisional figures indicate an almost 6% decline in new electric car registrations in 2024,” the Mercedes-Benz Ceo points out. ”
Market share is also on a downward descent, declining by 1% to 13.6%—far from the sharp increase needed to meet stringent CO2 targets in the coming years.”