POWER: EU Car Industry Calls for Delay to Emissions Targets

According to a draft proposition from the industry lobby seen by Bloomberg, the European Union is being urged to implement emergency regulations to postpone its 2025 emissions targets for automakers by two years.

• EU rules capping fleet emissions at 95 grams of CO2/km could force automakers to stop producing 2mn cars or face fines up to €13 billion.
• Volkswagen, which is Europe’s biggest automaker, will be among those likely to fall short of the targets.
• “EU industry will have little choice but to significantly cut production, which threatens millions of jobs in the EU, harms consumers, and adversely impacts the EU’s competitiveness and economic security,” according to the draft.
• The Commission should have “a bit of flexibility” regarding upcoming targets, Renault executive Luca de Meo said.
• Additionally, the EU plans to phase out the sale of new combustion engines by 2035, with a review of the target in 2026.