Europe’s OEMs won’t challenge ICE ban: ACEA

EUROPE’S contentious internal combustion engine (ICE) ban is feasible if the right conditions are in place, so says the president of the European Automobile Manufacturers’ Association (ACEA) and Renault CEO Luca de Meo.

Speaking with Automotive News Europe at the Geneva International Motor Show, Mr de Meo said that regardless of who wins this year’s European parliamentary elections, OEMs “will not challenge” the European Union’s decision to effectively ban fossil-fuel powered cars by 2035, adding that the right conditions must first be put in place if the plan is to succeed.

“As business leaders (it is not our place) to argue against the regulation – we are not contesting 2035,” he stated.

“We must get down to it. A fossil-fuel car ban in 2035 is potentially feasible, but the right conditions must be put in place.”

Mr de Meo said the industry has already invested billions of euros in electrification and this would be wasted if the combustion engine phase-out was ditched.

“There is no way the industry can go back to square one. It is bad for the environment,” he added.

Slowing demand for electric vehicles has placed increased pressure on Europe’s automotive industry.

Cheaper models from China have forced European OEMs to cut costs and develop more affordable models, but there is growing concern that these steps will not achieve their desired outcome in time to save some from relevance.

European OEMs have argued repeatedly that more government subsidies and more ubiquitous charging infrastructure is needed to drive demand for electric vehicles and encourage mass adoption.

The European Union made its decision to ban new internal combustion engine powered vehicles from 2035 in October of 2022. The decision means OEMs must reach a zero emissions target by the middle of the next decade, and that new diesel- and petrol-powered cars will not be eligible for registration and use on the region’s roads after that time.

Additionally, the deal includes a 55 per cent cut in CO2 emissions for new (ICE) cars sold from 2030 when measured against 2021 levels, a significant toughening of the previous 37.5 per cent target.

The agreement has global ramifications.

As the world’s largest trade bloc, the EU has a reputation for setting standards globally and is home to some of the world’s biggest car manufacturing names.

Already, Bentley, Ford, Jaguar, Stellantis, and Volkswagen have committed to the cessation of sales of internal combustion powered cars by 2035 or earlier.

But there are exceptions to the rule. Niche manufacturers such as Lamborghini, which produce only a small number of vehicles per annum, are afforded a 12-month reprieve from the emissions targets.

Detractors of the plan say it could lead to a build-up over time of older vehicles on EU roads rather than new generations of potentially more efficient ones – the very same argument now facing to the Australian government as it seeks to implement its New Vehicle Efficiency Standard here.