The European Automobile Manufacturers’ Association (ACEA) has warned that car manufacturers from outside the European Union are “taking the lead” in the production and sale of electric vehicles globally, as they have significant competitive advantages over Europe.
Specifically, following the International Geneva Motor Show, where Chinese manufacturers such as MG and BYD unveiled new electrified models, ACEA points out that these markets have invested earlier and are more vertically integrated in the battery value chain, with easier access to raw materials.
Furthermore, they add that they have larger economies of scale and, “most importantly, they do not have the burden of phasing out 17 million combustion engine cars in just over ten years“.
Europe, on the other hand, “has put the electric cart before the ‘battery horse’, leading to strategic foreign dependencies,” explains Tommaso Pardi, an expert at the French National Centre for Scientific Research, in a statement from ACEA.
“We urgently need a comprehensive and coordinated automotive industrial policy, with a real strategy that connects the pieces of the Green Deal puzzle. Europe needs to wake up!” Pardi indicates.
It is worth mentioning that ACEA requested the same in a manifesto published a month ago, calling for a holistic EU industrial strategy across all steps of the value chain: from R&D, mining, refining components, and manufacturing; to charging networks, energy, purchase incentives, and recycling.
Renault’s CEO and ACEA President, Luca de Meo, states that these conditions should be firmly established to meet the rapidly approaching gradual phasing out date for combustion engines in 2035.
“As business leaders, we will do everything possible to ensure our companies are able to comply. We are here to drive progress, to make Europe innovative, and electrification is one of the fields of innovation in transportation,” explains de Meo.
“There is no way the industry would recommend going back to square one, because it doesn’t make sense and is bad for the environment,” he adds.
ACEA asserts in the statement that there is a commitment from the industry towards electrification, but “we cannot do it alone,” they indicate.
Therefore, they add that a robust and significant interim review of CO2 regulation is crucial, something that, as they recently acknowledged, was also recognized by European Commission President Ursula von der Leyen.
“We will need to clearly define how we measure success and how we will determine if we are on the right track for 2035,” they explain.
Therefore, the industry expects the EU “to rise to this pivotal challenge by establishing the appropriate framework conditions,” among which it mentions access to charging points, affordable green energy, purchase incentives, tax schemes, “and much more.”
It also emphasizes that transforming workforce capabilities is also an essential piece of the puzzle.
“The electric car market is like a rocket, but it needs a boost to reach orbit,” says Pardi.
“Only by working together (across the entire automotive ecosystem and with policymakers) can we give the market the momentum it needs,” he adds.
Finally, the European industry association details that it will address this collaboration theme across the ecosystem during the “#FutureDriven” reception in Brussels.
In this meeting, MAN Truck & Bus CEO Alexander Vlaskamp, ASML President and CEO Peter Wennink, and E.ON CEO Leonhard Birnbaum will join Luca de Meo to discuss how all stakeholders can work together to create “true European champions” and reduce dependence on foreign competitors, concludes the industry association.
