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Car-producing countries demand a halt to EU penalties for exceeding CO2 fleet values.

(dpa/jr) From 2025, German car manufacturers in Europe will also face heavy fines if their fleets emit too much CO2. Another initiative from federal states with car locations, Bavaria, Baden-Württemberg, and Lower Saxony, aims to stop this. The argument is that there is no money for investments. And: The competitive situation has changed. However, BMW considers the CO2 targets achievable. 

Holding its ground: At BMW from Bavaria, electric cars are booming, and the company is on track with CO2 fleet values. Nevertheless, Bavaria's Prime Minister Söder wants to undermine the EU regulations. | Photo: BMW
Holding its ground: At BMW from Bavaria, electric cars are booming, and the company is on track with CO2 fleet values. Nevertheless, Bavaria's Prime Minister Söder wants to undermine the EU regulations. | Photo: BMW
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According to the automotive regions of Bavaria, Baden-Württemberg, and Lower Saxony, the penalties threatening car manufacturers in the EU from 2025 for exceeding CO2 fleet limits should be stopped. "The impending immense surcharge for exceeding limits would lead to a lack of liquidity for car manufacturers required for further necessary investments in transformation. Competitive disadvantages, particularly compared to Chinese manufacturers, would increase," states a joint letter from the prime ministers of the three federal states to Commission President Ursula von der Leyen (CDU). However, a major manufacturer from Bavaria, BMW, recently stated that the limits are achievable and that they have prepared accordingly. Thus, a disadvantage threatens advanced manufacturers, who have made significant upfront efforts to comply.

Letter signed by Kretschmann, Söder, and Weil

The three-page letter was signed by Winfried Kretschmann (Greens, Baden-Württemberg), Markus Söder (CSU, Bavaria), and Stephan Weil (SPD, Lower Saxony) and is available to the German Press Agency.

Under current EU legislation, manufacturers face fines if they exceed the so-called fleet limits for CO2 emissions. These limits are set to become stricter in 2025. Manufacturers have to pay penalties for emitting too much CO2. The European Automobile Manufacturers' Association (ACEA) has stated that the industry faces penalties of up to 15 billion euros.

The average CO2 limit for all vehicles registered in the EU in one year must not be exceeded. Currently, this value is 115.1 grams of CO2 per kilometer per vehicle - measured using a special test procedure. It is set to decrease to 93.6 grams in 2025 and to 49.5 grams by 2030. Since even modern combustion engines cannot reach this value, automakers need to lower the average with electric cars to avoid penalties.

States criticize a new competitive situation for the auto industry

"The surcharge for exceeding emissions (penalty payments) was established at a time of a completely different international competitive situation," it further states. Companies should only have to make compensatory payments for missing targets if they are responsible for them. Customers are hesitant to buy electric cars also because the charging infrastructure planned by the EU is insufficient. 

Instead of penalties, the three state leaders demanded a different approach. The penalties should be suspended and the planned review of the CO2 limits should be brought forward to the year 2025 (or for heavy commercial vehicles to the year 2026). Additionally, there needs to be a review of the EU regulation for the establishment of a unified charging infrastructure. "Any sanctions against companies should only be imposed after this process is completed," emphasized the prime ministers.

Argument: Fines are missing from automakers for important investments 

It should be avoided "that financial sanctions counteract the efforts of the automotive industry, which is already intensively involved in the development of sustainable vehicles and the establishment of the corresponding infrastructure," it continued. It is crucial that the EU and the industry work together to develop constructive solutions that create incentives and promote dialogue to build trust and convince consumers of the benefits of electromobility.

Translated automatically from German.
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