ACEA President Calls for EU Leaders to Address Critical Priorities for Automotive Industry

The European Automobile Manufacturers’ Association’s (ACEA) newly elected president, Ola Källenius, has recently issued an open letter to EU leaders outlining three critical priorities for the automotive industry in Europe - to ensure future competitiveness and drive decarbonisation across the continent.

The first being the creation of a “realistic pathway to decarbonising the European automotive industry – one that us market drive, not penalty driven.”

The ACEA believes the European Green Deal needs realignment to make it less rigid and more flexible to turn the decarbonisation of the automotive industry into a green and profitable business model that creates economic growth and competitiveness.

Currently, the rate at which electric vehicles are being sold in Europe isn’t enough to meet the levels required by regulations at this time.

In his letter, Källenius suggests promoting the purchase and use of electric vehicles with fiscal and non-financial incentives, a revision of the regulatory framework (including adjusting the current penalties-based regulations) and being provided with a clearer idea of CO2 targets for cars and vans by the European Commission for 2025 and the following years – as well how to mitigate the risk of non-compliance.

The second critical priority is the EU’s need for a regulatory framework that “enhances competitiveness of European industries.” Källenius believes it is not enough to revise the European Green, but that it must coincide with a strategy that helps all European industries to sharpen their competitive edge. He references a report on European competitiveness initiated by the President of the EU which lays out a clear roadmap to overall competitiveness. Källenius would like to see the report turned into decisions and reforms, such as “simplifying the regulatory calendar by grouping automotive regulations into batches, ensuring that new regulatory requirements apply only to new and not to existing type approvals, and establishing a task force to assess regulatory consistency.”

The final critical priority highlighted by Källenius is for the EU to “promote new approaches to create worldwide, mutually beneficial trade relations” to advance both the automotive industry and Europe jointly. With the political and trade gaps between the UK, the US and China at risk of deepening further, Källenius believes “rather than raising walls, the European internal market should be strengthened and made more resilient” as soon as possible. This will help ensure that the automotive market has access to the materials it needs – especially those needed to help with the green transition and decarbonising the European automotive market.

To read the full letter, visit: https://www.acea.auto/news/letter-to-eu-leaders-boosting-europes-automotive-competitiveness-for-renewed-economic-growth/