Europe made history on October 27th. Late in the evening, negotiators from EU governments and members of the European Parliament reached an agreement on ending sales of new cars and vans with combustion engines by 2035. The combustion engine, which was invented in Europe, will no longer exist.
Cars play a major role in European life, and millions are employed in their manufacture across the continent. We tell how decisions were made across Europe’s biggest capitals and the challenges that lie ahead.
Germany
It is best to start from Berlin. In the homeland of European automobiles, switching from the internal combustion engine to the electric motor has always been a big problem.
Although 26% of new cars are fully or partially electric, Germany is one of the leading countries in the field of electric cars in Europe. However, with so many jobs at stake, the decision to end the use of the combustion engine will be a controversial one.
2021 saw the end of Angela Merkel’s 16-year rule and the start of a Social Democratic (SDP) and Green-Liberal (FDP) coalition. Chancellor Schulz and his party were in favor of the 2035 phase-out along with the Green Party. However, a liberal FDP would expose cracks in the coalition’s resolve. While they support the general principle of 100% net-zero emissions by 2035, their ideological focus on “technology neutrality” would put them on a conflicting path. Christian Lindner, the party’s leader, has pushed hard for an e-fuel mandate as a backdoor to liquid fuels in road transport, and even threatened not to support the EU deal.
Germany has ambitious climate goals to achieve. The German government has set a goal of producing 15 million battery electric cars in 2030, compared to only one million cars today, with 80% of electricity coming from renewable energy by that date. The transition to renewable energy sources and clean technologies offers huge opportunities, but will pose a challenge. “It will need to reinvest and retrain workers,” says Friedrich Peiper, e-mobility expert at T&E Germany.
Most German carmakers have already committed to phasing out petrol and diesel sooner, with Daimler and Opel choosing the early date of 2030. But German carmakers’ focus on hybrid vehicles (PHEV) poses a challenge. Piper says rising demand for raw materials means automakers will need to prioritize battery electrics rather than plug-in hybrid electric vehicles (PHEV).
For consumers, affordability is key. “We must stop incentives for polluting company cars, which disproportionately go to wealthy workers“While the public is increasingly embracing electric vehicles, with one in five new cars being battery powered, in the corporate world, only one in 10 is fully electric,” says Piper.With more than 70% of new cars going to the corporate market, this is a huge opportunity to bring millions of used electric batteries to the European market.“, Piper explains.
Italy
2022 has been a turbulent year for Italian politics. When not? After the collapse of the national unity government established by President Draghi, the year ended with the first woman assuming the position of Prime Minister of Italy, Giorgia Meloni, head of the right-wing Brotherhood of Italy party. Could this derail Europe’s electric push?
With Mr Draghi officially backing the EU Commission’s Fit-55 package, the announcement of support for the 2035 phase-out of ICEs from the Italian government came early December 2021. However, as pressure mounted in his coalition government to reopen the proposal, and with industry and environmental transition ministers forming a coalition to allow a backdoor to e-fuels, Draghi remained silent. “Despite the strategic importance of electric mobility for national and European economies, we have never seen it advance clearly in favor of phase-outsaid Veronica Aneris, Director of T&E in Italy.
The automotive industry in Italy faces major challenges. In both electric cars and conventional engines, Italy’s market share has been declining for a long time. It has been losing market share not only to traditional competitors such as Germany and France, but also to emerging companies such as Bulgaria and Romania. The country is moving very slowly towards electric vehicles, with only 3.7% of new vehicles being battery electric vehicles (BEVs).
Against the backdrop of these concerns, Italian ministers were divided over the phase-out. The Ministers of Transport and Labor supported this choice. While green transition and industry ministers sought to reopen the decision, wrongly portraying the switch to electric vehicles as a “bloodbath” for jobs.
Forward-looking unions, including in Piedmont – the region where sedans have historically been produced – have realized that such a false narrative could jeopardize the competitiveness of this industrial sector. “Despite general resistance from the public driven by the false narrative about job losses, civil society, especially unions, stood behind the phase-out. They realized that delay Phasing out in 2035 will not save jobs; It will do the oppositesaid Carlo Tritto, T&E Italy representative.
The current Transport Minister and populist Matteo Salvini is deeply disappointed Pursuit To reopen the decision. But the government seems to have understood the global and strategic nature of e-mobility, Trito says. At the end of the Car schedule (Industry and Government Working Group) – A first for the new government – The Industry Minister from Meloni’s party called for an EU-wide industrial response to China and strong US support for its automotive sectors. With France and Germany moving quickly in this regard, Italy is finally taking its first steps in the right direction. Let’s hope the new year brings serious industry commitment to e-mobility.
Poland
At the forefront of the war in Ukraine, Poland could be forgiven for not bringing the transition to electric mobility to the forefront of public debate. With only 2.5% of new cars being BEV in 2022.”The idea of owning and driving an electric car is still unthinkable for the majority of Poles“, says Poland’s T&E Director Rafal Baychuk. However, Poland stands on the brink of a great opportunity as Europe’s green technology factory.
Poland is arguably the biggest success story in electric vehicle manufacturing. Poland is already the third-largest employer of vehicles in Europe, and as a major supplier of spare parts, Poland plays a key role in battery construction. The world’s largest lithium battery factory is in Poland, where battery exports have already surpassed those of conventional cars.
This is confirmed by a study by FPP, a member of T&E, which found that the switch to electric vehicles would be “favorable” for Poland’s economic output. “The government opposes a rapid transition to electric vehicles at an EU level, but knows how much opportunity the country has.said Rafal Bagchuk, Director of T&E Poland.
The Conservative government (PiS) chose to vote against the phase-out in an appeal to its voters. But behind the scenes, the government must have been happy with the result, Baychuk says.
This is evidenced by the government’s funding of a state-owned startup that will develop electric vehicles in partnership with Chinese car manufacturer Geely. Poland may turn out to be the biggest winner in Europe. The next big challenge will be convincing Poles to buy them.
Spain
People may be surprised to know that Spain is the second largest car manufacturer in Europe. Although it does not host recognized brands from Germany or France, Spain has for some time been a manufacturing hub for some of the world’s largest carmakers. Since the automobile industry is the country’s second-largest employer, the decision taken in Brussels was important.
Spain’s left-wing coalition led by Pedro Sánchez has been strongly in favor of phasing out emissions by 2035 from the beginning. But it wasn’t easy sailing. MEPs were originally in favor of a new target of 2027 and a higher target of 2030, but many of them, including the Socialists, were moved to oppose this new 2027 target. The Socialists supported the revised 2030 target, but the Spanish Liberals ended up killing it. Intermediate targets have been dropped, but the 2035 date is over the line. “Believe us it wasn’t easy,” a government official told T&E after the triads.
Spain was slow to electrify. In fact, it is four times slower than its Portuguese neighbours. There are currently around 200,000 electric vehicles on the road in Spain, with a target of 5 million by 2030. As for public charging points, the government’s target is 100,000 by 2023, but with only 15,000 in operation today, that seems like a long shot. Stature. to request.
Car manufacturers in SpainYou better start swimming, otherwise they will sink like a stone… The opportunity will not come again.“Advises Isabel Bushell, T&E Manager in Spain. She is very critical of the focus on the production of plug-in hybrid electric vehicles (PHEV). Since Spain is a major exporter of electric vehicles, this tactic leaves Spain vulnerable.”With countries like Germany no longer supporting and penalizing plug-in hybrid electric vehicles (PHEV), who will buy PHEVs made in Spain?“
With Spaniards spending an average of €13,000 on a car, electric car prices should come down. Cheaper models are needed, and as Bushell says, “Creating a used electric market that does not currently exist is essential to democratizing the electric vehicle. Company cars and fleets will be key to this.”
Büchel says that with a progressive coalition, supported by EU recovery funds, now is the ideal time to future-proof the Spanish economy. With next year’s general elections approaching, things may not be so favorable. Conservative opposition leader Alberto Nunez Viejo admitted he is not a fan of electric cars. Times are changing, Bushell reiterates, and Spain’s huge manufacturing industry cannot afford to hesitate.
France
France’s presidency of the Council of the European Union fell during an election year in France. President Macron was re-elected after a painful campaign on the back of a promise to tackle climate change and secure French jobs. The transition to electric mobility has been and will continue to be a key battleground.
While negotiations were underway, France was initially in favor of a 2035 phase-out as long as it allowed plug-in hybrid electric vehicles (PHEV) until 2040. French manufacturers have invested heavily in the technology and much of the automotive sector’s workforce has been trained to build combustion engines. French government”She used her role as council president to appear neutral and not very supportive of the 2035 phase-out, leaving the door open to concessions on plug-in hybrid electric vehicles (PHEV).said Diane Strauss, Director of T&E in France.
When the 2035 resolution was dropped in France, it was big news. “We were all over French TV and radioNarrated by Lucien Mathieu, acting French director at the time. “I have to admit there was a degree of skepticism. Many asked whether electric vehicles were really climate-friendly? It was a great opportunity for me to explain to the public why this was the right decision.”
Following the EU decision, the government abandoned its position on plug-in hybrid electric vehicles (PHEV) and firmly committed to selling fully electric vehicles by 2035.
The challenges are “Social and EconomicStrauss said. In France, more than anywhere else in Europe, the focus on affordability has become a major theme. France was the birthplace The idea of “social renting”. – A mechanism that would give an electric car for €100 a month to the most vulnerable groups – which Mathieu says could make France a “thought leader” in managing the transition to electric mobility.
While the move away from the combustion engine means the workforce needs to be retrained, the switch to electricity offers new opportunities for French jobs. French industrial policy should aim to increase and restore the production of electric vehicles with a focus on small vehicles with large markets. It is clear today that there isThe mismatch between what French car manufacturers produce and what people demand,Strauss says.
In an election year, the 2035 phase-out may prove symbolic. Macron was able to get rid of right-wing populism for the time being. Seizing the industrial and societal opportunities created by the transition to electricity may be what ensures that moderate politicians will be re-elected in Europe next time.
United kingdom
Boris Johnson’s government has come out ahead of the EU with its plan to ban sales of fossil fuel cars and vans by 2030. See how things are going in the UK.
