In a letter to EU leaders, the newly appointed European Automobile Manufacturers’ Association (ACEA) President, Ola Källenius, outlines automotive sector priorities to ensure future competitiveness and drive decarbonisation.
in ACEA, 16-01-2025
A thriving European automotive industry is essential for driving economic growth and competitiveness. The industry faces unprecedented challenges from global competition, geopolitical tensions, and a more complex than anticipated transformation towards electric and hydrogen zero-emission mobility.
In a letter published today addressed to EU leaders, the President of the European Automobile Manufacturers’ Association (ACEA), Ola Källenius, outlines three critical priorities:
- a realistic pathway to decarbonising the automotive industry, one that is market driven, and not penalty driven; find a solution to the disproportionate costs of compliance with the 2025 CO2 target for cars and vans;
- implement recommendations of the Draghi report: create a regulatory framework that enhances the competitiveness of the European industries;
- promote new approaches to create worldwide, mutually beneficial trade relations for the EU to continue benefiting from free and fair trade.
“The European Green Deal must be subject to a reality check and a realignment – to make it less rigid, more flexible and to turn the decarbonisation of the automotive industry into a green and profitable business model. Let me be clear: the EU auto industry remains committed to the EU’s 2050 climate neutrality goal as well as the shift to zero-emission transport and mobility,” stated Ola Källenius, ACEA President and CEO of Mercedes-Benz.
The most urgent action that the industry needs now is that the EU finds a solution for compliance burden relief for cars and vans on the 2025 CO2 target.
Political action today could not be more critical, as the latest provisional figures indicate an almost 6% decline in new electric car registrations in 2024. Market share is also on a downward descent, declining by 1% to 13.6%—far from the sharp increase needed to meet stringent CO2 targets in the coming years.
The European Green Deal must be subject to a reality check and a realignment – to make it less rigid, more flexible and to turn the decarbonisation of the automotive industry into a green and profitable business model.
