# Euro 7 emissions proposals, the sequel Europe’s carmakers don’t want to see Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-28 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: European Carmakers Oppose Costly Euro 7 Emission Regulations Meta Description: Find out why European carmakers are pushing back against costly emission regulations and how it could impact the industry. URL: https://financedigest.com/euro-7-emissions-proposals-the-sequel-europes-carmakers-dont-want-to-seehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-28t050448z2lynxmpej2r05urtroptp4autos-europe-emissions-1736814248663-compressed.jpg) By Christina Amann and Marie Mannes BERLIN/STOCKHOLM (Reuters) – European carmakers are fighting back against proposed emission regulations they argue are too costly, rushed and unnecessary, but which the European Commission says are needed to cut harmful emissions and prevent a repeat of the Dieselgate scandal. European Union countries and lawmakers will negotiate “Euro 7” proposals this year on tighter limits for car emissions – for diesel cars, but not petrol – and for heavy-duty trucks and buses, including nitrogen oxide and carbon monoxide. The EU has progressively tightened [limits since “Euro](https://www.financedigest.com/digital-euro-will-be-free-but-limited-in-scope-ecb-says.html "Digital euro will be free but limited in scope, ECB says") 1″ in 1992. The Commission’s [proposal widens real-driving emissions](https://www.financedigest.com/eu-proposes-tighter-vehicle-pollution-emission-standards.html "EU proposes tighter vehicle pollution emission standards") (RDE) testing and adds continuous testing of emissions via an on-board monitoring system. [Euro 7 would take effect in mid-2025 for cars](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") and in mid-2027 for trucks and buses. The rules would also cover tyre and brake emissions. Executives including Stellantis CEO Carlos Tavares say the rules are “useless” while carmakers [invest tens of billions of euros](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") in electric vehicles (EVs) and start phasing out fossil-fuel cars. The tempo of complaints has increased recently. Lobby group the European Automobile Manufacturers’ Association (ACEA) said Euro 7 would raise new [car prices](https://www.financedigest.com/3-tricks-to-get-a-better-price-when-selling-your-car.html "3 Tricks To Get a Better Price When Selling Your Car") by 2,000 euros ($2,145) and an executive at Czech carmaker Skoda claimed the Volkswagen unit would have to axe 3,000 jobs. Iveco CEO Gerrit Marx called the proposals “plain stupid”. The [European Commission estimates Euro 7 could add up to 150 euros](https://www.financedigest.com/dollar-outshines-euro-sterling-amid-european-bank-jitters.html "Dollar outshines euro, sterling amid European bank jitters") to car prices and 2,600 euros for trucks and buses. The ACEA [says pollutant reductions from Euro 7 will be minimal](https://www.financedigest.com/over-a-dozen-chinese-based-firms-say-they-have-minimal-exposure-to-svb.html "Over a dozen Chinese-based firms say they have minimal exposure to SVB"). The Commission argues they will be significant. Mattias Johansson, Volvo Cars’ head of governmental affairs, told Reuters the 2025 deadline left “practically no reasonable [lead time” to make engine changes](https://www.financedigest.com/how-to-lead-organizational-change.html "How to Lead Organizational Change") and lacks details on testing procedures. [Volvo has committed to being fully electric](https://www.financedigest.com/swedens-ab-volvo-wins-its-largest-electric-truck-order-so-far.html "Sweden’s AB Volvo wins its largest electric truck order so far") by 2030. Daimler Truck CEO Martin Daum said new emission sensors will require “huge investments” and Alexander Vlaskamp, CEO of Traton unit MAN estimates Euro 7 will cost it 1 [billion](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") euros. Truck makers also complain [Euro 7 comes as they face](https://www.financedigest.com/euro-zone-economy-faces-growing-risk-of-recession-survey-shows.html "Euro zone economy faces growing risk of recession, survey shows") tougher CO2 limits from 2030. It is an accepted behaviour of politicians in Brussels to bash the [automotive industry](https://www.financedigest.com/automotive-fuel-filter-market-opportunity-analysis-and-industry-forecast-up-to-2031.html "Automotive Fuel Filter Market: Opportunity Analysis and Industry Forecast up to 2031") because we deserve it” following Dieselgate, Iveco’s Marx said. A Commission spokesperson declined to comment on executives’ statements, but said Euro 7’s real-driving emissions tests were important because of “scandals in the past about cheating devices”. In the Dieselgate scandal, Volkswagen admitted in 2015 to fitting about 11 million cars worldwide with software to cheat diesel emissions tests – [costing the German carmaker more than 32 billion](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official") euros in vehicle refits, fines and legal costs. Last week, the International Council for Clean Transportation (ICCT), an independent non-profit organisation, said 77% of tests on pre-RDE [Euro 6 diesel vehicles](https://www.financedigest.com/eu-electric-vehicles-risk-4-3-billion-euro-post-brexit-tariff-cost-auto-body.html "EU electric vehicles risk 4.3 billion euro post-Brexit tariff cost – auto body") exceed a “suspicious” emissions threshold, indicating “likely use” of cheating devices. Stefan Bratzel, head of think-tank the Center of Automotive Management, said Dieselgate has [created an image problem for carmakers where “you couldn’t trust](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology") in what they said. Not all of the auto [industry is unhappy about Euro](https://www.financedigest.com/euro-zone-industry-output-falls-sharply-with-ireland-plunge.html "Euro zone industry output falls sharply, with Ireland plunge") 7. Vitesco CEO Andreas Wolf said the powertrain [supplier sees it as an opportunity](https://www.financedigest.com/a-missed-opportunity-research-reveals-that-while-small-finance-accounting-businesses-view-themselves-as-cost-savvy-most-arent-switching-water-suppliers-or-other-services.html "A missed opportunity: research reveals that while small finance & accounting businesses view themselves as cost-savvy, most aren’t switching water suppliers, or other services"). The timeline [means stress for a lot](https://www.financedigest.com/why-fundraising-no-longer-means-kissing-a-lot-of-frogs.html "Why fundraising no longer means kissing a lot of frogs") of companies,” he said. “But we are prepared for everything.” Cummins feels Euro 7 [“strikes a good balance](https://www.financedigest.com/how-finance-leaders-can-strike-the-balance-between-human-and-artificial-intelligence.html "How finance leaders can strike the balance between human and artificial intelligence") between being tough, clear and enforceable,” said Pete Williams, the U.S. [engine maker’s](https://www.financedigest.com/engine-parts-makers-must-cross-valley-of-death-to-reach-ev-era.html "Engine parts makers must cross ‘valley of death’ to reach EV era") European head of technical compliance. But Williams added there are some vague areas, including how on-board monitoring (OBM) – a [system inside a vehicle to detect](https://www.financedigest.com/the-fall-detection-system-market-to-show-innovation-based-steadiness.html "The Fall Detection System Market to show innovation-based steadiness") if the vehicle is exceeding emission limits – should work. “We know how to spell OBM, but we don’t know what it is,” Williams said. “So obviously we’re encouraging the Commission to move quickly to define that.” ($1 = 0.9323 euros) (Writing By Nick Carey, additional reporting by Nick Carey in London, Giulio Piovaccari in [Milan and Gilles Guillaume in Paris; Editing by Susan Fenton)](https://www.financedigest.com/london-fears-losing-luxury-shoppers-to-paris-and-milan.html "London fears losing luxury shoppers to Paris and Milan") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---