Italy and Germany are against a European Union plan to start phasing out combustion engine cars that is pivotal to the bloc’s green agenda.
(Bloomberg) — Italy and Germany are against a European Union plan to start phasing out combustion engine cars that is pivotal to the bloc’s green agenda.
The plan, which requires carmakers to reach a zero-emission target by 2035, was provisionally agreed upon by member states last year.
German Transport Minister Volker Wissing said he is working to allow vehicles with combustion engines to continue getting licenses beyond 2035. “The EU Commission would prefer to allow only battery-powered vehicles. We see that differently,” Wissing said in a video on Twitter.
“Besides battery technology, we want hydrogen fuel cells and especially e-fuels because they can secure climate neutral mobility in the combustion engine,” Wissing said.
Rome also voiced its opposition. “While Italy shares the decarbonization targets, they need to be reached by an economically sustainable and socially equitable policy,” the Italian environment ministry said in a statement.
Both Poland and Hungary have said they oppose the EU move. The European Commission, the EU’s executive arm, is seeking a solution to avert the risk of a minority blocking the deal, according to an official who asked not to be named on a confidential issue.
Joint Approach
Italy and Germany have been in talks to coordinate their positions on the combustion engine issue, another official said. Their joint approach reflects their proximity on industrial matters, the official added.
Earlier this month, the European Parliament signed off on the deal reached with member states. The agreement requires that they cut pollution by 55% this decade, and forms a key pillar of the bloc’s overall aim of reaching climate neutrality by 2050.
The deal on cars has global ramifications. As the world’s largest trade bloc, the EU has a reputation for setting standards globally and is home to many some of the biggest car manufacturers like Volkswagen AG and Mercedes-Benz Group.
Volkswagen AG, Europe’s largest carmaker, declined to comment on Wissing’s opposition to an ICE ban, saying the EU’s goal of no new combustion engine vehicles from 2035 was “ambitious but achievable.”
“We accept the EU‘s decision and are prepared to deliver on it,” a Volkswagen spokesperson said. “E-fuels can play a role in the battle against climate change for existing cars that are on the road.”
A spokesperson for Stellantis NV declined to comment. Chief Executive Officer Carlos Tavares has been vocal about the need for governments to think harder about EV policies that risk leading to social unrest as electric vehicles becomes increasingly expensive. The lack of affordable cars also will likely open the door to lower-priced Chinese EVs, a further threat for the industry, Tavares has said.
Lobby Approval
Germany’s biggest industry lobby group BDI – which represents manufacturers of everything from autos to textiles – said it welcomes the transport minister’s initiative and rejects a “de facto end for the combustion engine”.
“It is important to consider electricity-based fuels for new registrations of passenger cars and light commercial vehicles in the CO2 fleet regulation,” according to the BDI Federation of German Industries.
The transition to electric vehicles is already having a social cost in Italy. Stellantis announced 2,000 job cuts in Italy Monday, or about 4.3% of its 47,000 workers in the country where Fiat was founded in 1899. The carmaker has cut over 7,000 workers in the country in the last three years, according to the Fiom union.
Ford Motor Co. will dismiss some 11% of its workforce in Europe as the US carmaker cuts costs in the latest sign of industrial disruption caused by the automotive sector’s shift to electric vehicles. Of the total 3,800 jobs to go, workers in Germany and the UK will be hardest-hit with about 2,300 and 1,300 positions to be eliminated respectively over the next three years, Ford said earlier this month.
–With assistance from Kamil Kowalcze, Michael Nienaber, Monica Raymunt, Kevin Whitelaw, Albertina Torsoli, Tommaso Ebhardt and Nicholas Comfort.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.