Skip to main content

European car manufacturers face world’s toughest CO2 targets

Following the adoption yesterday of the European Commission's proposals to reduce CO2 emissions from cars and vans, the European Automobile Manufacturers' Association (ACEA) says it will now work with its members to conduct a full analysis of how the proposed targets should be reached as well as their feasibility, and what this means in practice for the industry as a whole.
July 12, 2012 Read time: 3 mins
RSSFollowing the adoption yesterday of the European Commission's proposals to reduce CO2 emissions from cars and vans, the European Automobile Manufacturers' Association (6175 ACEA) says it will now work with its members to conduct a full analysis of how the proposed targets should be reached as well as their feasibility, and what this means in practice for the industry as a whole.

The auto industry shares concerns about global warming and is contributing actively to find sustainable solutions. In 2011, the average fleet emissions were 136.6 gCO2/km compared to 186 gCO2/km in 1995, which is a 26.6% decrease over the period. "It is clear that CO2 levels from vehicles have to continue on their downward trend and the industry is committed to deliver on this," stated Ivan Hodac, ACEA secretary general.

However, the proposal to reach a fleet-average target of 95 gCO2/km for cars and 147 gCO2/km for vans by 2020 will remain extremely challenging.

"These are tough targets - the toughest in the world," said Hodac. Indeed, contrary to some claims, the proposed targets for the European fleet are far more stringent than those in the US, China or Japan. This will increase manufacturing costs in Europe, creating a competitive disadvantage for the region and further slowing the renewal of the fleet.  

In the context of declining car sales for the past five years running, the proposed targets would place an extra strain on manufacturers. The outlook for the industry as a whole is also pessimistic. In 2012 new car registrations are expected to decrease by about  seven per cent compared to 2011, and sales are set to drop from 13.1 million to 12.2 million. This is a record low since 1995.

"Considering that most manufacturers are losing money in Europe at the moment, the industry needs as competitive a framework as possible. Targets, while ambitious, must be feasible. The overall regulatory framework and market environment must be supportive, as also agreed in the recently concluded CARS 21 process," explained Hodac.

"The industry is diverse; the CO2-legislation is complex, and the cost implications are huge. ACEA and its members will now take the time they need to investigate the details of these proposals and their envisaged consequences."

The ACEA members are BMW Group, DAF Trucks, Daimler, Fiat, Ford of Europe, General Motors Europe, Hyundai Motor Europe, Iveco, Jaguar Land Rover, Porsche, PSA Peugeot Citroën, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, Volvo Group. They provide direct employment to more than two million people and indirectly support another 10 million jobs.

For more information on companies in this article

Related Content

  • EU draft on road pricing adopts ‘user pays’ principle
    October 31, 2018
    Draft rules have been adopted by European policy makers which would bring the idea of widescale ‘user pays’ road pricing one step closer. European Union member states which currently use time-based road user charges will need to switch to distance-based ones for trucks and buses (over 2.4 tonnes) from 2023, and vans and minibuses from 2027, if the rules are made into law. The idea is that vehicles would then be charged according to their actual road use and the pollution they generate. The ‘user
  • Global toll revenues $8.5bn while technology ‘battles’ continue
    April 9, 2014
    ABI Research’s Dominique Bonte talks to Jason Barnes about trends in tolling and how a wider appreciation of technology options is sorely needed. Global Electronic Toll Collection (ETC) solution revenues will grow to $8.5bn by 2018, with ETC becoming a main source of funding for both Intelligent Transport Systems (ITS) and Vehicle-to-X (V2X) cooperative infrastructures, according to a new report from ABI Research (Chart 1). But, says the report’s author, ABI Research vice president and practice director Dom
  • NNG completes EU-supported auto nav solution
    April 20, 2012
    As part of the New Hungary Development Plan, NNG has developed a new, automotive line-fit navigation solution based on the iGO My way engine. The company, which was awarded an EU subsidy for the 18-month development project, has now delivered its first line-fit navigation product to a market-leading global motor-vehicle Tier 1 supplier.
  • Nissan and Daimler to produce engines together in North America
    March 23, 2012
    In the latest step forward in the collaboration of the Renault-Nissan Alliance and Daimler, Nissan's Decherd, Tennessee plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014, with installed capacity of 250,000 units per year once full ramp-up is achieved.