Deal to loosen the EU’s car CO₂ standards and IAA requirements a ‘historic mistake’ that puts Europe’s position in the global EV and battery race in jeopardy.
T&E has labelled the French and German government’s agreement to weaken the EU’s car CO₂ standards and IAA requirements as a ‘historic mistake’. The agreement to allow cars assembled in the EU but built with Chinese batteries to be labeled as Made-in-EU jeopardises the entire European battery supply chain, warns T&E.
Anna Krajinska, senior director at T&E, says: “Germany and France are making a historic mistake. German and French political leaders claim they are acting to save jobs, but this may well be the deal that buries Europe’s auto industry. When drivers are facing record fuel prices and Europe’s car industry is under intense pressure from the Chinese, a deal that slows down the shift to EVs is the worst possible move.”
With fuel prices at record highs and electric cars repeatedly breaking sales records, this agreement will drastically slow down the shift to electric. T&E finds that the proposed deal would curb the supply of EVs from 57% based on today’s target 57% to 43% in 2030. The recent EV progress report by T&E shows that this will jeopardise the ability of EU carmakers to compete with Chinese rivals and remain competitive in the global EV race. Crucially for consumers it will slash the availability of cheap models coming on to the market.
“Shockingly, electric cars assembled in Europe with batteries produced in China would receive a “Made-in-EU” label.
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