The European Union (EU) Commission was preparing to start the biggest move from the end of 2020, while setting norms for controlling the emissions of exhaust gas polluting the environment since the early 1990s. Accordingly, starting from 2021, the amount of carbon dioxide (CO²) in all cars sold in the EU must be reduced to an average of 95 grams per kilometer. However, it will be 15 percent below 2021 levels by 2025 and 35 percent below 2021 levels by 2030. For these targets, which seemed impossible to hold, both investments and international collaborations for electric and hybrid vehicles powered by alternative fuels would increase rapidly, especially this year, hundreds of new models would come into play.
300 BILLION EURO INVESTMENT
Because otherwise, brands that could not meet the emission standards would pay a penalty per CO2 amount in every vehicle they sold as of 2021. This meant that each brand was fined billions of Euros. That is why automotive manufacturers announced that they will invest over 300 billion Euros in electric vehicles with zero emissions in 5 to 10 years.
However, in light of all these developments, all plans have turned upside down due to the corona virus epidemic, which has increased its impact in Europe since March. Automotive production in Turkey was completely stopped, dealers were closed, sales fell more than 50 percent in March alone. While 1.5 million losses have been on the production front so far, the situation of more than 1 million employees has been put at risk.
ACEA REQUIRES DEFER
At a time when automotive brands are cornering, financially troubled, and turning themselves into government funds, the EU Commission is expected to delay its emission decision. In fact, the European Automobile Manufacturers Association (ACEA) has officially submitted its requests to postpone the EU Commission on this matter.
Because in such a pandemic period, there is neither production nor new models being introduced to the market. In Europe, the incentives for electric cars have fallen off the agenda, as the priority of states is a pandemic. Now the question in the minds of all automotive companies is: “Will the European Union (EU) Commission postpone the harsh emission practices that will be put into practice in 2021?”
As you know, while only a few brands could meet the new emission rates to be implemented in Europe by 2021, it is already clear that most companies will pay billions of Euros. It was also known that brands other than a few brands, which are obviously able to provide new emission rates, have already put billions of euros in fines in their 2021 budgets.
At the point reached, it is stated that the EU Commission is considering changing the calendar considering the difficult automotive companies. This will immediately turn to the head, “Will the pandemic experienced be the savior of the companies that are preparing to pay the penalty?” brings the question. We’ll wait and see…
