Belgium (Brussels Morning Newspaper) European car emissions standards could give an unwanted edge to Chinese carmakers, as they force European companies to split their research and development resources between internal combustion engines and fully electric cars, warned the CEO of Europe’s second-largest car manufacturer.
Speaking at a business conference in Berlin on Tuesday, Stellantis head Carlos Tavares warned that the Euro 7 emission standards, set to come into force in 2025, are “a diversion from the major goal of electrification.”
Tavares’ argument is that the uncertainty regarding emissions standards is costing European manufacturers resources that would be better spent accelerating the move away from internal combustion altogether.
“I don’t think Europe needs Euro 7,” said Tavares. “It is going to divert part of our research and development power to something we don’t need, while our Chinese competitors enter the market with the single technology of battery-electric vehicles. Why are we using our resources for a technology we want to ban? It’s not common sense.”
The so-called Euro standards introduce mandatory limits on greenhouse gas and pollutant emissions of internal combustion engines used in new cars, including carbon dioxide, carbon monoxide and nitrogen oxides. At the same time, the EU is planning for a total ban on sale of internal combustion powered cars by 2035, prompting some manufacturers to question whether benefits of ever-tighter emissions standards are worth the costs.
Hybrid as a stopgap
Previously, Tavares has called on the EU to soften the planned total ban on petrol engines by 2035 at the Paris Motor Show last week, arguing that hybrid models should be given a greater role in the transition to zero-emission vehicles.
“The dogmatic decision that was taken to ban the sale of thermal vehicles in 2035 has social consequences that are not manageable,” Tavares warned in Paris. “If you deny the middle classes access to freedom of movement, you are going to have serious social problems.” According to Stellantis CEO, affordable battery-electric cars are still five to six years away.
Stellantis, an umbrella company created by the merger of Italo-American Fiat Chrysler Automobiles and the French PSA Group, is already manufacturing a range of battery-electric vehicles across its brand portfolio, with its sales of Fiat New 500, Peugeot e-208 and Opel Corsa-e trailing close behind rival Volkswagen’s electric vehicle sales in Europe.
Speaking on Tuesday at the Automobilwoche Kongress in Berlin, Tavares said that the major issue for Western carmakers in the coming year is the risk of falling behind the Chinese manufacturers, more than any single other concern, such as semiconductor bottlenecks or energy prices.
“If there is one thing to be afraid of, it is the decline of the Western world,” warned Tavares. “We need to work more efficiently to beat the Chinese not only on technology but also on quality, price, service… that is the major issue we have in front of us.”
