{"id":69801,"date":"2025-09-11T00:18:10","date_gmt":"2025-09-11T04:18:10","guid":{"rendered":"https:\/\/www.globalvillagespace.com\/tech\/co2-rules-threaten-european-car-industry-survival-warn-leaders\/"},"modified":"2025-09-11T00:18:10","modified_gmt":"2025-09-11T04:18:10","slug":"co2-rules-threaten-european-car-industry-survival-warn-leaders","status":"publish","type":"post","link":"https:\/\/www.globalvillagespace.com\/tech\/co2-rules-threaten-european-car-industry-survival-warn-leaders\/","title":{"rendered":"CO2 Rules Threaten European Car Industry Survival Warn Leaders"},"content":{"rendered":"

Why Are European Car Makers Urging the EU to Rethink CO2 Rules?<\/p>\n

If you\u2019ve been following the European car industry lately, you might have noticed a growing sense of urgency\u2014and even alarm\u2014among top executives. Stellantis\u2019s Jean-Philippe Imparato recently sounded the alarm at the Munich Motor Show, warning that unless the EU revises its ambitious CO2 reduction targets soon, the entire European automotive sector could be at risk. But what\u2019s really driving these concerns, and what are industry leaders proposing as a way forward?<\/p>\n

Let\u2019s break down what\u2019s at stake, why these rules matter, and what solutions are on the table.<\/p>\n

What\u2019s the Problem With the Current CO2 Targets?<\/p>\n

Right now, European legislation requires carmakers to slash CO2 emissions by 55% for cars and 50% for vans by 2030, compared to 2021 levels. By 2035, the goal is a complete 100% reduction\u2014effectively phasing out new petrol and diesel vehicles. Ambitious? Absolutely. But according to Imparato and other industry leaders, these targets are outpacing both market readiness and infrastructure.<\/p>\n

Here\u2019s the crux: Most European car buyers still shop for vehicles under \u20ac40,000, and electric vehicles (EVs) at that price point remain scarce. Charging infrastructure is patchy, especially outside major cities. And with inflation and economic uncertainty, many consumers are holding onto their older cars longer than ever. The result? A widening gap between regulatory ambition and real-world feasibility.<\/p>\n

BMW CEO Oliver Zipse echoed these concerns, warning that if the rules don\u2019t adapt, the European car industry could shrink by half. That\u2019s not just boardroom bluster\u2014recent data from the European Automobile Manufacturers\u2019 Association (ACEA) shows EVs made up only about 14% of new car sales in 2023, and growth is slowing as incentives wane and costs remain high.<\/p>\n

Why Are City Cars and Vans in the Spotlight?<\/p>\n

Two segments are particularly under threat: affordable city cars (the so-called A-segment) and light commercial vehicles (LCVs) like vans under 3.5 tonnes.<\/p>\n

Let\u2019s start with city cars. Not long ago, buyers could choose from nearly 50 models under \u20ac15,000. Today, there\u2019s just one left. Why? Safety and emissions regulations have added thousands to the cost of building these small cars, making them unprofitable. That\u2019s a big deal, since these vehicles are often the most accessible option for urban drivers and first-time buyers.<\/p>\n

Vans face a similar squeeze. The current rules would require electric vans that cost upwards of \u20ac50,000\u2014a tough sell for small businesses and tradespeople. Imparato argues that the legislation as written is \u201cjust writing the crash of the LCV industry below 3.5 tonnes in Europe.\u201d<\/p>\n

What Solutions Are Industry Leaders Proposing?<\/p>\n

Rather than just pushing back, car bosses are coming to the table with concrete ideas. Here\u2019s what they\u2019re asking the EU to consider:<\/p>\n

1. Rethink Van Emissions Rules
\nImparato suggests pooling CO2 reductions for vans over a rolling five-year period, and allowing all relevant technologies\u2014including cleaner diesel options\u2014to count toward targets. This would give manufacturers more flexibility and help keep essential vehicles affordable.<\/p>\n

2. Bring Back the Affordable City Car
\nIndustry leaders want a new European-specific category for city cars, inspired by Japan\u2019s kei car rules. These vehicles would have capped emissions (around 110g\/km), limited power and speed, and be built with high European content. Crucially, they\u2019d be exempt from some of the costly regulations that have priced them out of existence. The goal? Revive the sub-\u20ac15,000 city car segment and make urban mobility accessible again.<\/p>\n

3. Focus on Renewing the Car Fleet, Not Just Selling EVs
\nHere\u2019s an interesting twist: Instead of only chasing new EV sales, why not incentivize people to trade in their aging cars for newer, cleaner models\u2014regardless of powertrain? The average car on European roads is now 12 years old. Removing a 15-year-old car and replacing it with a new one can cut CO2 emissions by up to 76g\/km per vehicle. Imparato argues that manufacturers should get credit for these CO2 savings, not just for tailpipe emissions from new cars.<\/p>\n

4. Prioritize B-Segment EVs
\nThe B-segment (think compact hatchbacks) is the heart of the European market. Imparato suggests giving carmakers \u201csuper credits\u201d for selling EVs in this segment, supporting both the transition to electric and the broader European supply chain\u2014including battery makers and parts suppliers.<\/p>\n

How Realistic Are These Proposals?<\/p>\n

On paper, these ideas sound like a win-win: more affordable cars, a smoother transition to lower emissions, and a stronger European industry. But will lawmakers bite?<\/p>\n

There\u2019s reason for optimism. For the first time, major carmakers are presenting a united front, with broad agreement on the need for change\u2014even if each company has its own priorities. The European Commission, led by Ursula von der Leyen, is under pressure to balance climate goals with economic realities, especially as the global auto market faces fierce competition from the US and China.<\/p>\n

Still, the clock is ticking. If the EU doesn\u2019t adapt its rules by the end of the year, industry leaders warn that plant closures, job losses, and a shrinking manufacturing base could follow. That\u2019s not just a problem for car companies\u2014it\u2019s a risk for millions of workers and the wider European economy.<\/p>\n

What Does This Mean for Everyday Drivers?<\/p>\n

If you\u2019re in the market for a new car, you\u2019ve probably noticed prices creeping up, especially for smaller models. The disappearance of affordable city cars isn\u2019t just a niche issue\u2014it affects anyone looking for practical, budget-friendly transport. And if you run a small business, the cost of upgrading to an electric van might feel out of reach.<\/p>\n

The proposals from Stellantis and others aim to keep mobility accessible while still moving toward a greener future. By focusing on realistic targets, flexible rules, and incentives for renewing the existing fleet, there\u2019s hope that the transition won\u2019t leave everyday drivers behind.<\/p>\n

The Road Ahead: Will the EU Listen?<\/p>\n

Change in the auto industry doesn\u2019t happen overnight. But what\u2019s clear is that the current trajectory isn\u2019t working for manufacturers or consumers. The next few months will be crucial as EU leaders weigh these proposals and decide whether to adjust course.<\/p>\n

If they get it right, Europe could lead the world in sustainable, affordable mobility\u2014without sacrificing jobs or innovation. If not, the risks are real, and the consequences could be felt for years to come.<\/p>\n

For now, all eyes are on Brussels. The outcome? It could reshape not just the cars we drive, but the future of European industry itself.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"DSC<\/a><\/p>\n

\n Industry bosses are calling for improved conditions for building city cars<\/p><\/blockquote>\n

Car bosses to meet EU president to pitch for more viable van emissions rules and a European ‘kei car’ segment<\/p>\n

\n

The entire European automotive industry will crash if legislation concerning\u00a0CO2 reductions isn’t revised by the end of the year, Stellantis\u2019s most senior executive in Europe has warned.<\/p>\n

Speaking at the Munich motor show<\/a>, Stellantis Europe boss Jean-Philippe Imparato said there was “a sense of urgency\u201d ahead of cross-industry talks with European Commission President Ursula von der Leyen on Friday\u00a0and there should be “less discussions, more actions”, which should include a new European-specific category to bring back the sub-\u20ac15,000 city car segment.<\/p>\n

Current European legislation has the industry working towards a 55% reduction in CO2 levels for cars and 50% for vans by 2030\u00a0and a 100% reduction by 2035, based on 2021 levels. This will\u00a0necessitate\u00a0a dramatic increase in EV sales.\u00a0<\/p>\n

“We’d like to stop discussion and see action \u2013\u00a0now,” said Imparato. “For the period of 2026 to 2030 and to 2035, the CO2 thresholds are not reachable. The market isn’t there, the economic context isn’t there, the charging stations are not there\u00a0and the price [of EVs] is not competitive.<\/p>\n

“Sixty per cent of the industry in Europe is for cars below \u20ac40,000, and we cannot meet the expectations of the customers here [with what the legislation requires around EVs]. We will never meet the thresholds requested, and if we don’t, we will crash the entire automotive industry.”<\/p>\n

Imparato’s comments came after BMW CEO Oliver Zipse warned the European car industry “will\u00a0halve”<\/a> if manufacturers are forced to comply with the rules as they are currently written.<\/p>\n

Imparato outlined four areas on which the industry had broadly agreed\u00a0and would be presenting to von der Leyen and her officials, and he said he would like the focus of the talks to be on these points rather than “spending hours discussing percentages”.<\/p>\n

First, the industry wants to\u00a0address\u00a0LCV (sub 3.5-tonne vans) legislation, which “is not reachable at all”, as “nobody will buy a \u20ac50,000-plus [electric] Fiat<\/a> Ducato today”.<\/p>\n

Imparato wants to see LCV CO2 emissions reductions pooled over a rolling five-year basis\u00a0and adapted to include any and all relevant technologies, including diesel.<\/p>\n

“The current legislation is just writing the crash of the LCV industry below 3.5 tonnes in Europe,” he said.<\/p>\n

Second point of order\u00a0is the legislation to enable the return of the A-segment city car in Europe. Imparato said there were once 49 city car models below \u20ac15k\u00a0but now there is just one, as these cars are no longer profitable to make.<\/p>\n

Imparato called on a specific category to be introduced for the rebirth of the A-segment in Europe, modelled on the likes of kei car rules in Japan and similar legislation in Brazil.<\/p>\n

These would be capped with CO2 emissions of around 110g\/km and could be mild hybrids with caps on power outputs and speed. They would be built in Europe with high levels of European content and with specific homologation to avoid the “\u20ac1500 per car of legislation” that Europe currently calls for, the likes of active safety technology having pushed up prices of city cars and made them no longer profitable.<\/p>\n

Third, Imparato detailed a proposal to focus\u00a0less on pushing the sale of new EVs but more on the “renewal of the car parc” and incentivising customers who are keeping onto their cars for ever longer periods to move into a new car of any type.<\/p>\n

“Today, we put all our energy into BEVs. Can we consider the 256 million cars already in the European car parc now\u00a0that are ageing one month every year?” he asked.<\/p>\n

Imparato said the average age of a car in Europe was now 12 years. If an average 15-year-old car were taken off the road, the average new car would have 76g\/km-lower CO2 emissions.<\/p>\n

Imparato would therefore like to see incentives to take older cars off the road\u00a0and car makers being “given the benefit of the CO2 savings” in calculating carbon emissions, rather than focussing on the tailpipe.<\/p>\n

“I don’t need the money, just the credit for the CO2 savings,” he said.<\/p>\n

The final proposal is a greater focus on promoting B-segment EVs instead of the whole market, given this is the core of the European market.<\/p>\n

Imparato<\/span> said car makers should be given ‘super\u00a0credits’ for selling them, as they are vital in supporting the wider European industry, the likes of battery makers and supply chains that have been set up.<\/p>\n

He is confident that progress will be made in the talks, and the fact that the proposals have been broadly agreed across all major car makers (with some pushing certain proposals of the four more than others, based on their own business needs) backs\u00a0up that confidence.<\/p>\n

Imparato<\/span> added that legislators cannot ignore that the market trajectory has not worked out as had been projected when the legislation and\u00a0targets were first written, hence the need to act now.<\/p>\n

“We\u2019re together,” Imparato said, when asked if car makers are truly aligned in their approach. “We are not here [at the Munich show] to sell cars. This is the first time we’re aligned in our messages and position in a positive way, with added value proposals. I hope that the regulator reacts positively and decides something by the end of the year.”<\/p>\n<\/div>\n","protected":false},"author":1,"featured_media":69802,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[2,137],"tags":[],"class_list":{"0":"post-69801","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-featured","8":"category-news"},"_links":{"self":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/69801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/comments?post=69801"}],"version-history":[{"count":0,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/69801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media\/69802"}],"wp:attachment":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media?parent=69801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/categories?post=69801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/tags?post=69801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}