CO2 targets set for European vehicle manufacturers in 2025 risk saddling them with “billion-euro fines,” the European Automobile Manufacturers’ Association (ACEA) warned on Tuesday.
It proposes two “quick fixes” to mitigate the impact on carmakers.
The ACEA’s appeal coincides with the European Commission’s work on an action plan to strengthen the competitiveness of the European automotive industry. The plan is expected to be presented on 5 March.
The association is calling for flexibility in implementing stricter CO2 standards, beginning this year, that will require manufacturers to meet an annual average emission level per car sold.
This requirement means the share of electric cars will need to increase. However, despite significant investments, the transition to electric vehicles is not progressing as the European Commission had envisioned, according to ACEA Director General Sigrid De Vries. She highlights the insufficient rollout of EV-charging infrastructure in many countries.
Based on 2024 sales figures, fines for manufacturers in 2025 could reach up to €16 billion, according to the ACEA. Reducing the production of fuel vehicles, buying emission rights, or drastically lowering electric car prices would also strain the sector financially. De Vries emphasizes that manufacturers in Europe are already producing electric vehicles at a loss, which is unsustainable.
ACEA suggests two ways to make the transition more manageable.
The first option is to tighten the standards gradually, applying them to 90% of sales in 2025 and 95% in 2026.
The second option is to apply the stricter limits to the average emissions over the 2025-2029 period, allowing initial shortfalls to be compensated later.
The sector says it is hoping for clarity from the European Commission by early March. “We cannot afford EU indecision," De Vries said. "Investments are on hold until we have clarity.”
