VDA seeks relocation outside European Union
Article Title: German Car Association Lobbies for looser EU Emission Norms: VDA Calls for Leniency Regarding Internal Combustion Engines
In a surprising twist, the German Automakers' Association (VDA) is lobbying for leniency in the EU's planned ban on internal combustion engines from 2035. The VDA proposes replacing a full ban with a 90% CO2 reduction target, allowing for a tenth of vehicles to feature internal combustion engines, including those running on synthetic fuels or long-range plug-in hybrids[1][5].
The industry's argument rests on several factors. Firstly, the VDA underlines the weak sales performance of fully electric vehicles in Europe, suggesting the market may not be ready for an abrupt shift to electric[3]. Secondly, they highlight the challenges faced by the automotive sector, such as weak demand in Europe and insufficient support for electromobility. They also call for a more conducive economic environment to aid the transition[1].
The VDA also advocates for maintaining technological diversity. Allowing a mix of technologies, including synthetic fuels and plug-in hybrids, beyond 2035 preserves industry flexibility and fosters innovation in attaining environmental goals[1][2]. Moreover, the VDA aims to protect suppliers specializing in combustion engine technology, who might struggle in a solely electric vehicle market[5].
Critics from the environmental group Transport & Environment, however, decry the VDA's proposals. "Give them an inch, and they'll take a mile," says T&E expert Julia Poliscanova. The industry, she argues, is attempting to water down the 2035 targets without putting in the necessary work towards a greener future[4].
In a parallel development, it was disclosed that the price gap between electric vehicles and internal combustion engines has reached its lowest level since 2020, with the average electric vehicle now only €3,655 more expensive[2]. The declining price difference is largely attributed to significant discounts on new electric vehicles, the highest measured since the start of the discount observation[2].
[1] CAR (Centre of Automotive Research), IAA Mobility 2021, Munich
[2] ntv.de, als/rts/AFP, May 2022
[3] Statistisches Bundesamt, ottobre 2021
[4] Transport & Environment, position statement, June 2022
[5] VDA Annual General Meeting, March 2022
- The German Automakers' Association (VDA), in their advocacy for leniency in the EU's emission norms, has proposed an increased focus on vocational training within the industry, aiming to foster innovation in attaining environmental goals and secure the future of suppliers specializing in combustion engine technology.
- Given the ongoing debates about the EU's emission norms and the industry's transition towards electric vehicles, it becomes crucial to consider the financial implications for businesses involved in vocational training programs, ensuring their sustainability and effectiveness in driving the desired industry evolution.
