European Commission softens emission standards for automakers
The lack of additional incentives for EV sales could further extend the gap between European firms and their Chinese and U.S. competitors.
This edition of The Mobility Week in Review explores the easing of emission reduction targets for European automakers, CAF’s major contract in Morocco, Bolt’s potential IPO, new initiatives to promote cycling in Europe, China’s pursuit of a new high-speed rail record, and Tesla’s plans to expand its autonomous capabilities in key markets.
Without further ado, let’s dive in…
😑 Automotive Emission Targets Weakened
Short-term gain, long-term pain. After months of pressure, the European Commission has opted to postpone emission reduction targets in the European Union, aiming to give car manufacturers more time to comply and avoid penalties. This short-sighted decision further hampers European automakers’ ability to adapt their electric vehicle offerings, widening the gap with American and Chinese brands, which continue to strengthen their position in the market that will define the future of the automotive industry. Under the current regulation, automakers must reduce their emissions by 15 percent by 2025, based on 2021 levels, or face fines of €95 per gram of carbon dioxide per kilometer exceeding the target for each noncompliant vehicle sold within the EU.