Adaptation of rules on electric cars, “open technological approach” and financing for the automotive sector. Before the Christmas break and the end of the year, the President of the European Commission Ursula von der Leyen sends a message of openness to the automotive world. “Each sector has unique needs and it is our responsibility to adapt solutions that are both clean and competitive,” the EU leader wrote in the launch note of the Strategic Automotive Dialogue. The initiative, which will start in January 2025, will bring together the protagonists of the European automotive sector, which is suffering greatly due to reduced sales of new vehicles and difficulties in the transition to electric cars.
From Brussels they let it be known that the ambitious objective of stopping the registration of cars with combustion engines in 2025 is not under discussion. It is rather a question of avoiding “punishments” against an industry that is struggling to recover, as well as of opening to technologies, such as biofuels, which until now had been excluded from the list of clean and sustainable sources. If these proposals had already been put forward in recent months, both by Italy and by the European People’s Party, the fact that this time it is Brussels directly speaking about them gives hope to the leaders of the automotive companies.
What is the Automotive Strategic Dialogue and when does it start?
The European Commission’s strategic dialogue on the automotive sector will start in January. The formula follows the one already used in 2024 for the agricultural sector after the tractor protests that turned half of Europe upside down. “The automotive industry is a European pride and is central to Europe’s prosperity. It drives innovation, supports millions of jobs and is the largest private investor in research and development. Each sector has unique needs and it is our responsibility to adapt solutions that are both clean and competitive,” said EU leader Ursula von der Leyen in the announcement on the start of the Dialogue.
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Brussels is committed to “ensuring that the future of cars remains firmly rooted in Europe”. To support the European automotive industry and suppliers, which are going through “a profound and disruptive transition”, the Dialogue aims to “support the global competitiveness of automotive production in Europe”, stimulating innovation and digitalisation, the use of artificial intelligence and autonomous driving. On the topic of decarbonisation, the note released by the Commission speaks of “an open technological approach”. The passage suggests that Brussels, in achieving its ambitious climate objectives, intends to review some of the restrictions applied so far on technologies considered clean.
The biofuels issue
Italy, together with the Czech Republic, have long insisted on bringing forward the revision of the regulation to 2025, rather than as expected in 2026, so that biofuels, of which our country is one of the main producers, are also included in alternative fuels to petrol. . At the time the regulations were drafted, “biofuels” were excluded, while electrofuels were allowed. A decision defended at the time by the EU executive, but on which this time Brussels could give in.
These changes in recent weeks have also been proposed by the European People’s Party (EPP), the main MEP force as well as the political family to which von der Leyen belongs. The text on the Strategic Dialogue also talks about “addressing issues related to jobs”, as well as “increasing demand by strengthening the sector’s financial resources, its resilience and its value chain in an increasingly international context competitive”. Participation in meetings of European automotive companies, infrastructure providers, trade unions and business associations is expected.
Record fines for emissions to be avoided
The sector is currently facing a number of difficulties. Added to the particularly weak demand is the unpreparedness in terms of charging infrastructure for electric cars, the difficulties in the production of batteries, as well as a structural dependence on supplies from China. In this complex context, the sector does not intend to stop the rule set for 2035 to block registrations with combustion engines.
A step backwards could compromise the large amount of investments already made or planned for the conversion to electric and set the sector back even further in the global context. The urgent decision to which the Dialogue will have to respond concerns the fines for Co2 emissions in 2025. It is estimated that they could amount to between 15 and 17 billion euros. A burden on budgets that manufacturers cannot afford to bear, while some giants such as Stellantis and Volkswagen have already started restructuring and layoff plans.
