Will the price of new cars explode with the entry into force of the future Euro 7 standard, applicable from 2025? This is feared by Luca de Meo, the new president of the European Manufacturers Association (ACEA) and still managing director of Renault. Under discussion after its presentation by the European Commission in November 2022, the text is however already considered too favorable to manufacturers according to environmental activists.
Brussels proposes in particular to make vehicle emissions tests more in line with real driving conditions and to set limits on the emission of particles caused by brake and tire wear. The Euro 7 standard would also reduce nitrogen oxide (NOx) emissions from passenger cars and light commercial vehicles by 35% compared to the previous Euro 6 standard, according to the Commission. Manufacturers, already shaken by the electric revolution, want a minimum standard for these thermal engines that will disappear in 2035.
A standard enacted according to the Commission’s plan would make cars more expensive on average by 2,000 euros for buyers, and could reduce the already struggling European market by another 7 to 10%, according to Mr de Meo, during a press conference in Brussels. “People will keep their cars longer and buy used cars instead of new cars,” the ACEA president described. According to Internal Market Commissioner Thierry Breton, this additional cost would only be “100 to 150 euros per vehicle”. The automotive industry could achieve a much better cost-benefit ratio by “redirecting the huge investment demanded by Euro 7 towards accelerated electrification, cheaper electric cars, or cleaner fuels”, according to the President of the ‘ACEA.
“The deadlines are too short, the conditions are too broad: at Renault, they could lead to the closure of four factories in the short term,” Mr. de Meo threatened. ACEA, on the other hand, supported the European “green deal” for industry, seen as a “response to the IRA”, the plan of massive subsidies from the United States to its industry. The text on critical raw materials (from rare earths to lithium) is also eagerly awaited by the industry.