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

  • Cartes 2014 News Test
    September 2, 2014
    Cartes 2014 News Test
  • Half of new vehicles shipping in North America to have driverless capabilities by 2032
    August 28, 2013
    According to a new study by ABI research, the first driverless vehicles will appear in North America in the beginning of the next decade, evolving to more than 10 million robotic vehicles shipping in 2032. “While the technological feasibility of autonomous vehicles is being demonstrated by Google, Audi, Volvo, Bosch, and Continental, obstacles such as high costs and lack of legislation remain. On the other hand, the benefits of autonomous vehicles in terms of safety, cost savings, efficiency, and posit
  • US$144 billion market forecast for multi-motor electric vehicles
    July 10, 2014
    The latest Electric Motors for Hybrid and Pure Electric Vehicles 2015-2025: Land, Water, Air report from IDTechEX finds that a US$144 billion market awaits in 2025, boosted by 8.9 million extra motors for multi-motor vehicles, most of them land vehicles - particularly cars - with industrial-commercial vehicles following close behind. Primary author Dr Peter Harrop notes, "Nevertheless, largest profit may be made in military and other segments. In some segments you are likely to be competing with your cus
  • Trailer telematics a catalyst for fleet optimisation, Finds Frost & Sullivan
    July 2, 2012
    The trailer telematics market is fast developing into a major growth engine for the commercial vehicles telematics market in Europe. Immense opportunities await telematics vendors as a majority of the trailer population in Europe (as well as North America) remains underpenetrated. Within the trailer telematics market, trailer location and tracking is the most developed application. However, security concerns and the need for effective mobile asset monitoring and management are creating several new applicati