The real cost of a green transport policy is up to ten times initial estimates according to the latest analysis.
The Euro 7 proposal on pollutant emissions would lead to direct cost increases that are 4 to 10 times higher than those cited by the European Commission, according to a new study.
The proposed Euro 7 regulation will increase the manufacturing costs of cars, vans, trucks, and buses. A study by Frontier Economics calculates the per vehicle costs at around €2,000 for cars and vans with an internal combustion engine, and close to €12,000 for diesel trucks and buses.
These figures are 4 to 10 times higher than the Commission’s estimates in its Euro 7 impact assessment (€180-450 for cars and vans, and €2,800 for trucks and buses).
These estimates comprise direct manufacturing costs only, primarily for equipment and investments. It is important to note that these additional costs do not correspond with purchase prices; instead they drive up prices for end-users even further. Price increases would likely therefore be higher than the figures cited in the study.
“The European auto industry is committed to further reducing emissions for the benefit of the climate, environment, and health. However, the Euro 7 proposal is simply not the right way to do this, as it would have an extremely low environmental impact at an extremely high cost,” stated Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association.
Europe’s automotive suppliers are regaining some of their optimism about the future, according to the latest Pulse Check survey conducted by CLEPA and McKinsey in February 2023.
While almost half of the surveyed suppliers anticipate low profit margins, the general outlook is good, with 35 percent expecting positive market growth.
This indicates a significant shift in sentiment from the last survey conducted in the fall of 2022, when 70 percent of suppliers had a pessimistic outlook. This mood change is mainly due to the prospect of higher revenue, expected by two thirds of suppliers surveyed.
At the same time, profits remain a source for concern, as nearly half (43 percent) of suppliers expect a low EBIT margin of just 1 to 5 percent with only one quarter expecting their profits to climb higher.
Octopus Energy’s Electroverse yesterday launched its new solution for businesses, unlocking its cutting-edge and seamless electric vehicle public charging experience for even more people.
The new fuel card which is in Beta phase will allow businesses to manage their EV fleets through a slick new online platform, with customisable reporting functions and give access to over 430,000 points.