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
Following 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 sets emissions targets to 2030, richer countries bear the burden
    July 22, 2016
    The UK’s Freight Transport Association (FTA) and FIA Europe have welcomed the European Commission’s package of measures, presented this week, to accelerate the transition to low carbon emissions in all sectors of the economy in Europe. The EU says the measures set clear and fair guiding principles to Member States to prepare for the future and keep Europe competitive. Responding to the announcement, the FTA said that the proposed measures are a step in the right direction to reducing freight carbon e
  • Moneybarn: 1,800% increase in UK electric car registrations over five year period
    November 2, 2017
    Nearly 10,000 electric cars are now registered in the UK with Japanese and German manufacturers dominating most popular brands in the UK, according to a five-year analysis on the development of the Electric vehicle industry by Moneybarn. These findings have been revealed following the government’s plan to ban the sale of all petrol and diesel vehicles from 2040.
  • EV manufacturers to focus on range, recharging and inductive charging
    April 7, 2017
    The electric vehicle (EV) market is booming, according to Frost & Sullivan researchers. Approximately 25 new electric vehicle models are likely to be launched later this year with Chevrolet Bolt and Tesla Model 3 being the most anticipated. The availability of incentives and subsidies in the market, significant investment by original equipment manufacturers, new entrants, and lower battery prices are factors propelling double-digit growth. However, the lack of standardisation in charging technology, absence
  • Eight ways Volkswagen can regain their customers’ trust
    October 6, 2015
    In the light of Volkswagen's concession of corporate wrongdoing in circumventing EPA (Environmental Protection Agency) testing in the US, Frost & Sullivan has proposed eight strategies the company can utilise to regain consumer trust, fuel sales volumes and develop sustainable revenue growth opportunities. Frost & Sullivan says developments in clean diesel technology and internal combustion engines (ICE) have been substantially pushed back by years. The immediate impact of this crisis goes beyond Volkswa