Europe is ready to backtrack on diesel and petrol. Updates on new regulations coming soon.
The 2025 deathline is upon us and institutions are called upon to address the deep crisis that the automotive sector is facing. Europe, however, seems ready to backtrack on the issue of petrol and diesel. The fines for car manufacturers could be too high and the risk of sinking them further is very high indeed.
Volkswagen, above all, Stellantis, Audi, Ford, Nissan, Bosch and Michelin are just some of the global brands in serious crisis. Several factories are closing and tens of thousands of employees are at risk of losing their jobs. Although many were eagerly awaiting the ecological transition now underway, it cannot be denied that it has been poorly managed, given the results.
Also for this reason, it seems that the European Union is ready to change the rules on the fuel issue. This was confirmed by the recent words of the President of the European Commission Ursula von der Leyen and those of the German Chancellor Olaf Scholz. The Strategic Dialogue between all the parties involved will be the instrument capable of modifying the green rules in place. An official note made it clear the future prospects for the old continent, changed due to the latest events.
Europe rethinks ecological transition
The trade battle in the automotive sector, fought with tariffs between China, the USA and Europe, sees the latter as the disadvantaged. In fact, in the EU, state aid to companies is formally prohibited. Even if the public has often managed to finance companies by taking advantage of the exemptions following the pandemic. Furthermore, the price of electric cars is still very high and there is no network of charging stations capable of attracting buyers to these new sustainable vehicles.
These are all issues that Europe is called to address as soon as possible. Also because from 1 January 2025 the first fines may begin to be issued to all those companies that have not aligned themselves with the Cafe (Corporate Average Fuel Economy) directives. The obligation imposed on all manufacturers in the automotive sector is to market models. Capable of consuming less fuel and with lower CO2 emissions.
Overall, according to estimates by Barclays bank, the amount of fines could be around 10 billion euros for 2025 alone. German Chancellor Olaf Scholz is very worried about what could happen soon. In fact, he aims to suspend everything based on Article 122 paragraph 1. Written in the Treaty on the Functioning of the EU (Source: Gazzetta.it).
The Strategic Dialogue between the parties will take place soon and will be an opportunity to “modernize and simplify the regulatory framework” , Ursula von der Leyen stated in a note. This is the first time in five years that the hypothesis of a modification to the current rules related to CO2 emissions has been admitted in writing. Taking a step back, given the enormous crisis in the automotive sector, seems to be an increasingly feasible solution. There are alternatives and it is hoped that they can be thoroughly evaluated as soon as possible. Given the high risk for companies and their workers.https://youtube.com/shorts/TrGhv4ITeUE?si=Synak5hCnVdSokpA