The electric car divides Europe - what's happening

While Brussels summons industry to accelerate the 2035 target, Italy moves against the petrol and diesel phase-out

L'Europa vacilla sui dazi alle auto cinesi

By: Riccardo Ciriaco

Published by: Brian Potter

Sep 11, 2024 at 3:46am ET

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These are decisive days for the fate of the European electric car, the subject in recent weeks of warnings, requests and political-industrial round tables. Writing the latest chapter (for now) is Thierry Breton, Brussels' Commissioner for the Internal Market, who convened the automakers to take stock of the situation and send out a strong and clear message: "We must accelerate to reach the 2035 objective".

No backtracking, then, on stopping the sale of petrol and diesel vehicles from the middle of the next decade, with the memorandum that "the task of politicians is not to sit back and wait for targets to magically materialise". Breton - reports Ansa - says he is "concerned" about manufacturers' delays in meeting the electrification target.

Clash with Beijing

At the centre of the States General are therefore funds for the transition, charging stations, batteries, raw materials and workers' skills, in a 'not so rosy' picture that paints China as being 'far ahead of Brussels in the production of affordable electric vehicles'. Waiting for the duties to do the job demanded by the Commission.

Beijing, however, does not stand for it and renews its offer of talks against the new import tariffs, in force temporarily since 5 July and definitively from the beginning of November if approved by 15 member states representing 65% of the population in the Old Continent.

"China is willing to continue to work closely with its European counterpart to reach a solution that meets the interests of both sides and is in line with World Trade Organisation (WTO) rules, so as to promote the healthy and stable development of economic and trade relations between China and the European Union," reads a statement from the local Ministry of Commerce.

According to Reuters, Brussels will in any case reduce the current additional taxes from the +9% minimum and +36.3% maximum now to the new ceilings of +7.8% and 35.3%, to be added to the previous 10%.

Manufacturer New duty Previous duty Total (+10%) BYD 17% = 27% Geely 18.8% 19.3% 28.8% SAIC 35.3% 36.3% 45.3% Tesla 7.8% 9% 17.8% Other collaborating companies 20.7% 21.3% 30.7% Other non-cooperating companies 35.3% 36.3% 45.3%

Cheap electric cars 'made in the EU

The face-to-face meeting between the commissioner and companies comes just after the invitation to write "an industrial action plan for the sector" put down in black and white in the report "The future of European competitiveness" by former banker and Italian Prime Minister Mario Draghi, delegated by President Ursula von der Leyen to chart the course for a new Europe, called upon to change in order not to go into "slow agony".

"Review the 2035 stop"

The results - from the meeting staged at the Berlaymont Palace - go against the grain with respect to the latest statements of a portion of the politicians. First and foremost, the Italian ministers Adolfo Urso, Matteo Salvini and Gilberto Pichetto Fratin, respectively heads of the Ministries of Enterprise (Mimit), Transport (Mit) and Environment (Mase), who are pushing to bring forward the review clause on the end to combustion engines from 2026 to 2025.

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The League of Transport Minister in Italy says it is ready to present an official document to 'engage the EU Commission', while Mase calls for a 'pragmatic vision', because the 'ideological' one would 'fail'. This will be discussed on 25 September at a summit in Hungary.

The Volkswagen crisis

Meanwhile, amid falling overall sales and competitors backing off on electrification, the Volkswagen Group is seeking an agreement with the trade unions to avoid the feared closure of two factories. Interviewed by Bild, CEO Oliver Blume reassures against mass redundancies: a compromise could be the short week, i.e. the reduction of working days from five to four. Without an agreement, the unions will call a strike.

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