Tag Archives: EU

News

EU ban on sales of combustion engines from 2035 remains

The EU has announced that it will not abandon its ban on the sale of combustion engine cars from 2035. “We are sticking to the targets for 2035, as well as those for 2025 and 2030,” said Transport Commissioner Apostolos Tzitzikostas.

When the EU announced that it would introduce new CO2 regulations from 2025, threatening heavy fines for those who did not comply, many European manufacturers rebelled. The EU then tried to find a compromise, and the deadline for reducing emissions was extended to 2027. This means that instead of measuring emissions compliance over just one year, averages will be measured over the past two years.

The group that represents manufacturers of electric vehicles and chargers, T&E, opposes the extension of the deadline, believing that the decision will not have a positive effect, because manufacturers will be able to produce less affordable vehicles, which will increase the already unattainable difference between Europe and China. They believe that the EU should be decisive in its goals and not make any concessions. However, how realistic would it be for the EU to make a radical decision?

The transition to fully electric cars is an expensive process and requires a lot of investment. This includes investment in research and development, new supply chains, training and equipping distributors and their workshops. The fact that the deadline had to be extended is an indication that the ten-year target is unrealistic. However, car manufacturers now have just three years to reach the new targets.

Source: Reuters

News

Renault sold its stake in AvtoVAZ for 1 cent

After Russia invaded Ukraine, the European Union imposed sanctions, forcing many carmakers to halt production in Russia. One of them was Renault, which even considered restarting production a month later, but backed out. It controlled 30 percent of the entire Russian car market, and now it has been announced that the French manufacturer has sold its share in AvtoVAZ (68%) to the Russian automotive research center NAMI for 1 ruble (1 cent).

It is obvious that Renault has no intention of returning to Russia, and if it were to decide to do so, it would cost them a lot. According to NAMI CEO Maxim Sokolov, the company has invested a lot in AvtoVAZ, so if Renault were to decide to return, it would cost them 112.5 billion rubles ($1.3 billion).

According to Sokolov, Renault invested between $226 and $249 million in AvtoVAZ before withdrawing from Russia, so he believes it would be right for the French to compensate NAMI if they return.

In an interview with TASS, he also said that in 2023, AvtoVAZ NAMI had invested about $311 million. Last year, they invested almost $453 million, and this year they plan to invest another $510 million.

Current relations between Russia and the EU do not indicate that there could be a relaxation soon, so it is difficult to expect that European manufacturers could return to the Russian market in the near future.

Source: TASS

News

Volvo supports a ban on ICE cars after 2035

Although many European car manufacturers have abandoned the plan to become fully electric by 2030, and put their focus on hybrids, they still believe in the EU’s plans. One of them is Volvo, which believes that the EU must not abandon the ban on the sale of ICE cars after 2035.

At the beginning of 2021, Volvo announced that it is rapidly moving towards the complete electrification of its fleet by the end of the decade. However, production problems and a drop in demand for EVs showed that everything was too fast. This forced Volvo to change its plan and face reality.

The Swedish company has announced that it will continue to produce cars with internal combustion engines after 2030, but they will have mild hybrid systems and will be produced in limited series. Also, the plan is for PHEVs and electric cars to account for between 50 and 60 percent of total sales by the end of this year. This target is too ambitious if we consider the sales of the last few months when fully electric cars accounted for only 26 percent of the total sales.

Volvo and 49 other car companies have signed a declaration with which they unreservedly support the European Union’s plan to ban the sale of cars with internal combustion engines, which should enter into force from 2035.

Some car companies disagree with the Swedish manufacturer. Similar opinion is shared by officials in several European Union countries who consider the plan absurd and unsustainable. The goal of the European Union is cars without harmful emissions, but not at any cost. In theory, this leaves room for internal combustion engines that would use synthetic fuel or hydrogen.

Source: Euronews