Eight EU countries have written to the Commission opposing Euro 7 and the accounts are coming out to block it
In Spain, CCOO is concerned about the possible modification of the headquarters of the thermal division of Renault
A post-Brexit deal to remove tariffs between the UK and the EU may be “soon”, says a British minister
Three main reasons – Euro 7, legal restrictions on thermals and Brexit – have raised controversy in the motor industry in recent days in Europe and the United States. It is clear that the regulatory incidence at an economic, industrial and commercial level is increasing every day. And different visions of the future, interests, opinions, figures and reality are displayed on a board where everyone wants to move their token at the same time.
Good rhythm?
Citizens, politicians and also manufacturers are aware of the conquest of a more sustainable world. The problem is the agenda, the calendar with which to carry it out.
And the positions that advocate slowing down the legal demands on the automotive industry are taking shape. Manufacturers must face a Euro 7 that, if applied, would start in 2025. And they try to communicate the consequences to European politicians, governments and citizens alike.
Who do you think will have to bear that cost? Well add 3.5% in fuel costs, which is equivalent to 650 euros in passenger cars and vans and 20,000 euros more in trucks. Incidentally, this last cost has not been assessed or accounted for by the Commission.
But the worst part is that, according to the entire industry, this standard would sabotage the efforts from manufacturers in favor of an electric car with reasonable prices and autonomy.
“Euro 8”
This brings us to what some have already begun to call the “Euro 8”. And it is that nothing less than eight EU countries have opposed the Euro 7 standard proposed by the Commission. With Italy in the lead, Bulgaria, Slovakia, France, Hungary, Poland, the Czech Republic and Romania have sent a letter to the Commission and also to the Presidency, currently Swedish, to express their disagreement with the norm. “We oppose any new regulations on exhaust emissions (including new testing requirements or new emission limits) for passenger cars and vans,” the letter stated, according to Automotive News. For now, the Euro 7 is a proposal that must be approved by at least 55% of the member countries that must represent at least 65% of the European population. Still most important: it is only necessary to vote against four member countries for it to be rejected, without the percentage of its population being decisive. The blockade would be fully assured, but this group of “dissidents” wants to have a majority of countries in their favor.
Agreement “soon” EU-UK
Badenoch, who was a promoter of the United Kingdom leaving the EU and who has come to affirm at other times that the concern of the large automotive manufacturers due to the so-called rules of origin “has nothing to do with Brexit”, He also said that “a practical solution must be found quickly” to questions about the implications of the 10% increase in tariffs in trade relations between the two geographical areas.
In an attempt to dilute the severity of the problem for British industry, which has been put on notice of possible factory closures, Badenoch noted that “the problem is not just a UK problem, it is a European Union and UK problem.” , since the tariffs are applied for both parties”. Late in the interview, he acknowledged the obviousness that the United Kingdom “urgently needs a strategy that creates attractive conditions for investment.”
On how it could affect Spain, we can provide data on imports and exports. According to the United Kingdom’s Office for National Statistics, imports of cars from Spain to the United Kingdom have recovered the figures of 2018 (see attached table). In contrast, exports from the island country have fallen by no less than half from the same five years ago. The trade balance, specifically in the automotive industry, is very positive at the moment. If tariffs of 10% were applied, many models would see their prices increase on both sides of the English Channel, in some cases modifying purchase decisions towards those models not affected by said taxes, that is, basically those manufactured in each geographical area.
fewer cars
Who has positioned itself has been Stellantis, but in the United States. He has done so in response to California’s request to the Biden administration to approve a possible advance ban on the sale of cars with combustion engines by 2035.
According to Reutersthe parent group of Chrysler (in addition to the North American brands Jeep and Ram) has sent a statement to some dealers in the country warning them that in order to comply with emission standards “we may be forced to allocate fewer conventional gasoline-powered vehicles”. The statement indicates that there are 13 other states whose emissions standards are already identical to those of the state of California, as well as that four other states are in the process of adopting these same standards. That adds up to 18 of the 50 states of the North American country and some of the most populous.
The statement reassured its affiliates by ensuring that “We will continue to make available to you all the models manufactured for the brands in your line” but added that “in some circumstances, we may be forced to allocate more electrified vehicles to California” and less to the rest of the states “to comply with the stricter regulations that are being applied there.”
There is no reason to look for an explanation beyond a mere business decision to protect your business. but it is difficult to predict the repercussion that may be associated the difficulty to acquire certain automobiles in the North American voter and taxpayer, unwilling to accept cuts in their liberties.
2023-05-27 08:09:07
#Euro #thermal #Brexit #raise #tension #governmentsmanufacturers #Europe
