Auto industry sets out plan for carbon neutrality under EU Green Deal, amid shrinking market

Brussels, 22 January 2020 – Forecasting the first downturn in EU car sales in seven years this year, the European Automobile Manufacturers’ Association (ACEA) today outlined the major challenges faced by the EU auto industry, as it embarks on the transition to carbon-neutral transport.

“One of the biggest drivers of change for our sector is the need to address environmental concerns,” stated Michael Manley, ACEA President and CEO of Fiat Chrysler Automobiles (FCA). “The good news is that carbon-neutral road transport is possible and together – with a holistic approach – we can reach it by 2050. But that also means a lot needs to change in the next few decades.”

Speaking to journalists in Brussels this afternoon, Mr Manley launched the EU auto industry’s ‘10-point plan to help implement the European Green Deal’, in which the 16 major automobile manufacturers set out how CO2 emissions can be further reduced in the most effective way.

Manley: “Firstly, we believe in choice for all. Policy makers should help drive the best possible results by remaining technology neutral – in other words, without imposing specific technologies or banning vehicles that can still deliver CO2 reductions.”

In addition, a dense network of charging points and re-fuelling stations – suitable for cars and commercial vehicles – must urgently be rolled out across the EU to support the deployment of alternatively-powered vehicles. This is one of the single most important enabling conditions for achieving carbon neutrality, according to the industry.

New low-emission technologies are expensive and will remain so for the foreseeable future. To ensure that the higher prices do not slow down fleet renewal, ACEA is also calling for consistent and economically-sustainable incentive schemes for users of both cars and commercial vehicles.

“Above all, we believe that road transport and mobility must remain affordable for everybody, regardless of where in Europe they live or their financial means. Likewise, the European Commission’s Green Deal should also be used as a means to strengthen the global competitiveness of our industry.”

“This is all the more important as we are about to face a shrinking market,” Michael Manley alerted. Indeed, ACEA forecasts that, after six consecutive years of growth, EU passenger car sales will drop by 2% in 2020.

“At the very time when our industry is massively stepping up investments in zero-emission vehicles, the market is set to contract – not only in the EU but also globally – so the transition to carbon neutrality needs to be very well managed by policy makers.”

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Notes for editors

  • The ACEA document, ‘Paving the way to carbon-neutral transport: 10-point plan to help implement the European Green Deal’, can be found online here: https://www.acea.be/publications/article/paving-the-way-to-carbon-neutral-transport-10-point-plan-to-help-imple.
  • In 2019, new‐car registrations increased by 1.2% in the EU, to more than 15.3 million units, marking the sixth consecutive year of growth.
  • EU car sales over the past six years: +5.6% in 2014, +9.3% in 2015, +6.8% in 2016, +3.4 in 2017, +0.1% in 2018 and +1.2% in 2019. Forecast of -2% for 2020.
  • Investing €57.4 billion in R&D annually, the automotive sector is already Europe's largest private contributor to innovation. Much of this investment is dedicated to clean mobility solutions.

About ACEA

  • ACEA represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.
  • Contact: Cara McLaughlin, Communications Director, [email protected], +32 2 738 73 45 or +32 485 88 66 47.

About the EU automobile industry

  • 13.8 million Europeans work in the auto industry (directly and indirectly), accounting for 6.1% of all EU jobs.
  • 11.4% of EU manufacturing jobs – some 3.5 million – are in the automotive sector.
  • Motor vehicles account for €428 billion in taxes in the EU15 countries alone.
  • The automobile industry generates a trade surplus of €84.4 billion for the EU.
  • The turnover generated by the auto industry represents over 7% of EU GDP.