European car manufacturers are also working on the potential financial effects of more severe EU emissions, facing the pressure of President Donald Trump’s trade threats. From this year, automakers must meet strict carbon reduction goals or face large penalties. Industry groups are calling for relief, as the demand for electric vehicles in Europe is decreasing and competition with Chinese manufacturers is increasing.
At the Summit in Brussels, the European Commission’s president, Ursla von del Rayen, has acknowledged the issues and guarantee that the regulatory authorities are promptly responding. Automakers can satisfy the emission target by producing more zero emission vehicles or reducing the output of burning engines. Alternatively, you can purchase discharge credit from companies that only produce electric vehicles, such as Tesla, Tesla, and Gerie in China.
The ability to buy credit, in particular, causes concerns of France and Germany, reducing the demand for electric vehicles, threatening factories closing and unemployment. This situation has worsened by Tesla’s CEO, the criticism of the EU tariff on Chinese electric vehicles and his political involvement. Benjamin Hadad, the French Minister of Europe, warned that such a situation could harm European political interests.
The new EU regulations also need to be electricity of the cars produced this year. Major European automakers, including Mercedes -Benz, Volkswagen, and Stulum, are struggling to meet these targets. Stellantis had already purchased $ 2 billion credit from Tesla between 2019 and 2021, but fines exceeded $ 15 billion in the industry and Volkswagen estimates up to 1.6 billion penalties. I am.
Tesla, on the other hand, has benefited from carbon credit sales. In 2023, the company gained $ 17.9 billion from credit, and the income from such sales was more than doubled last year, $ 2.8 billion. European automakers also have a repetition of regulations and face the US policy under Trump, which threatened tariffs. The European automotive industry has hired 13 million people, and in 2024, electric vehicles have declined by 6 %, but Chinese manufacturers market share has increased by 45 %.
European executives argue that the ambitious targets set under the 2020 green transactions do not explain confusion such as pandemic and energy crisis. Mercedes -Benz’s Ora Karenius has called for a more flexible approach to the decarbonization process, aiming for a balance between environmental goals and profitability. Despite these issues, the EU regulation authorities promise to reduce emissions by 2030 by 2030 and ban new gas vehicles by 2035.
