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The top car manufacturers will likely have three years instead of one to achieve their goals for their cars and trucks, Reuters reports. The EU will propose a three-year deadline for car manufacturers to meet CO2 targets.
Shares of major European car manufacturers rose yesterday, Monday, March 3. Investors were pleased when the European Commission pushed for an extension of CO2 emissions targets. Achieving such levels depends on selling more electric vehicles. European car manufacturers are lagging behind their Chinese and American competitors.
Ursula von der Leyen, President of the European Commission, said that the targets remain the same and they need to meet the goals. But she added that she is giving the industry more time to achieve the emission goals, Reuters reports.
Shares of Volkswagen, BMW, and Mercedes-Benz rose after Ursula von der Leyen’s comments.
Shares of Renault climbed up to 5.4%, while Volkswagen rose up to 5.3%, and Mercedes-Benz increased by 4.7%.
Industry sources stated that compliance will be based on the period 2025-2027.
The European Union significantly lowered the cap on CO2 emissions from cars this year, meaning that at least one-fifth of all sales by most car companies must be electric vehicles (EV) to avoid heavy fines. The ultimate goal is zero emissions by 2035.
EU car manufacturers have recently been hit by factory closures and now also face tariffs from the USA.
They called on the Commission to grant relief from fines that they say could amount to $15.7 billion if their fleets don’t meet the limits this year.
The EU’s executive arm is set to publish its automotive action plan tomorrow, Wednesday, March 5.
BMW announced this month that it had halted a £600 million overhaul at its Cowley Mini plant amid slow demand for electric vehicles (EVs) and the UK’s zero-emissions vehicle (ZEV) regulations, reports The Telegraph.
Last week, industry figures showed that Britain’s car industry had its worst January in two years, with the number of cars produced falling to 78,012, compared to 98,811 a year earlier. (3/4/2025)