The European car manufacturers are decorated for a trade war that can be unfolded by President Trump, and they are working to get rid of another threat on their turf at home. It is expected to pay hundreds of millions of dollars to Tesla and Chinese competitors.
Under the strict European Union regulations, automakers who sell cars in Europe are facing a large penalties if vehicle production cannot achieve strict goals to reduce carbon emissions. The demand for electric vehicles in Europe has been sluggish, and the manufacturers are narrowed down to competition with China, and car manufacturers, politicians, and industry groups are doing lobbies for rescue.
After the industry Summit held in Brussels on Thursday, the European Commission's President Ursla von del Rayen and the European Union's administrative department faced the automotive industry, and the regulatory authorities would deal with them. He acknowledged that he was acting quickly.
Under the rules, automakers can satisfy the target by increasing the number of zero emissions to be produced or reducing the output of the vehicle with a combustion engine.
There are other options. They can purchase discharge credit by manufacturing only electric vehicles and “pool” with companies with abundant credits. With a twist of fate, it is a few of their largest rivals, such as Tesla and Gerie, China, which owns Volvo cars and dominates the shares to electric car manufacturers. I am pointing.
The strategy of buying emissions is not new, but recently caused an alarm in France and Germany, the home of Europe's largest automakers. Because the demand for electric vehicles softens, it leads to threats of closing factories and thousands of losses. In addition to European concerns, Tesla's highest executive Officer, Elon Musk, has criticized the EU's tariff on electric vehicles built in China, and has been accused of interfering with Britain and German politics.
“The strict attitude that billions people are transferred to a Chinese manufacturer have conquered European market share through unfair trade practices, or CEO's Eron Mask has opened the European regulation and value. It will be a political error in Tesla, “said Benjamin Hadad, a French Minister of Europe.
Also, in the EU measures, at least one quarter of all new cars produced this year will be electricity. Most large -scale European car manufacturers, including Mercedes -Benz, Volkswagen, and Startsis, are not approaching the target. They are producing as many electric vehicles as ever, but they continue to create gas fuel fuel cars and trucks to meet customer demand.
When Europe began to tighten the rules of emissions in 2021, Stellantis, formed from the merger of PSA Group and Fiat Chrysler, purchased a $ 2 billion discharge credit from Tesla from 2019 to 2021. 。
Still, it is less than the potential penalties. Renault's highest executive officer Luka de Meo estimates that paying a fine may cost more than $ 15 billion in the industry, and Volkswagen is 16 on an analyst call earlier this week. He said he could face the fines of $ 100 million.
According to the Swiss Bank UBS analysis, Tesla's compensation can exceed $ 1 billion in the Pooling Scheme. The carbon cash was the benefit of Tesla's cash flow. The company gained $ 17.9 billion from such sales in 2023.
Last year, Tesla's income by selling emissions in Europe and the United States doubled to $ 2.8 billion.
European companies are in a disadvantageous position in which Trump has swore to suppress business regulation and roll back the automatic pollution rules in his first semester. I say there. His threat to imposing tariffs may further narrow down European automakers.
The European automotive industry, which employs 13 million in 27 blocks, is particularly vulnerable. The new European electric vehicle has decreased by 6 % in 2024, but many from Chinese manufacturers with 45 % European EV sales compared to the previous year. It is expected that the market share will only increase.
The predictions made by Brussels when Brussels approved a ambitious carbon disconnection project known as a green dealer in 2020, a supply chain caused by the energy crisis caused by pandemic restrictions and Russia's invasion. He claims that there was no price for confusion like interruption. Ukraine.
“European green transactions must be subject to real checks and reorganization. To turn them into a more rigid, more flexible, and the car calibration of the automotive industry into a green and profitable business model.” Benz and the president of the European Automobile Manufacturer Association wrote in a public letter to European leaders.
Regulatory authorities argue that Europe will maintain a course to reduce emissions by 2030 by 2030, compared to the 1990 level. By 2035, the production of new gas cars is prohibited in Europe.
