Automotive industry, controversial beneficiary of European stimulus plan

While the sector benefits from the environment for the ecological transition, the contribution of hybrid vehicles to it is disputed.

by

It is an impressive delegation that the European automotive lobby had gathered, May 13, 2020, in Europe again confined. The CEOs of Fiat Chrysler, Jaguar Land Rover, Scania AB, Volkswagen and many other leaders of the sector had come together for a videoconference which, they hoped, could contribute to the support of their industry, undermined by the Travel restrictions. According to the European Automobile Builders Association (ACEA), the closure of automotive plants has, in fact, resulted in a loss of production of 2.4 million vehicles over the first six months of 2020, with a decline in sales of More than 95% on the main markets of the European Union (EU).

On May 13, 2020, the European Commissioner at the domestic market, Thierry Breton, as well as Frans Timmermans, in charge of the Green Covenant for Europe, were at the rendezvous to listen to the grievances of the manufacturers. At that time, the EU was about to reveal the largest revival plan in its history, called facilitation for recovery and resilience (FRR), 723.8 billion euros. With this money widely borrowed on the financial markets, the European Commission hopes both to help the European economy to get up from the pandemic and ensure that Member States invest in the ecological and digital transition.

Rechargeable hybrids

During the videoconference, the patterns of the automotive industry pass their message: considerable support will be necessary to reopen their production sites and maintain jobs. In return, they promise to accelerate the “greenish” of the sector, in favor of which their commitments were still even shy. At the Glasgow Climate Summit in November 2021, Volkswagen, Renault or BMW estimated that they would always sell fossil fuel cars in 2040, highlighting the uncertainties about “the development of a global infrastructure to support a passage Complete to carbon zero-emission vehicles, “according to the words of a BMW representative in the Financial Times of November 8, 2021 .

Builders put on the front of rechargeable hybrid vehicles, operating both with fuel and electricity, such as one of the solutions promoting green transition. A vision shared by the Commission. The German Research Foundation The Wuppertal Institute, who evaluated the stimulus programs in 17 Member States, in collaboration with the European CLIMATE CLIMATE TEXT GROUP, Watch only with total expenses of 109 billion Euros, the mobility sector represents the largest share of stimulus investments in the EU. Of this amount, 23.1 billion euros are devoted to road transport and the automotive industry, including a significant share for hybrid vehicles.

You have 46.8% of this article to read. The rest is reserved for subscribers.

/Media reports.