There is a serious risk of losing hundreds of thousands of jobs in the European automotive industry if timely measures are not taken to help the sector achieve its CO2 reduction targets by 2030. This is the forecast of Christian Levin, CEO of Scania and Traton Group, and current chairman of the Commercial Vehicles Council of ACEA (European Automobile Manufacturers' Association). According to him, European truck manufacturers will not be able to withstand the astronomical billions of euro fines that threaten them if they do not comply.
Inevitable consequences and ambitious goals
The consequences of this situation will be felt far beyond the factories, as Trailer.se highlights in an interview with the head of the Swedish Automobile Manufacturers' Association. The problem is only just emerging, but its consequences are already starting to become visible. Under current legislation, truck manufacturers must reduce the average CO2 emissions of their fleets by 45% by the end of the decade compared to 2020 levels.
Failing to meet this target will result in a fine of €4250 for every gram of CO2 emitted per vehicle. Simple arithmetic shows that this could lead to fines of up to €1 billion per manufacturer. "We are the foundation of society. Transport is the reason Europe is so efficient. If we lose our competitiveness as an industry, we will lose jobs, logistical capacity and our position as a world market leader," says Christian Levin, who heads the ACEA section that brings together heavy-duty truck manufacturers.
Challenges to electrification
Currently, the current fleet of battery electric vehicles represents only 3.5% of the total heavy-duty truck market in the EU. This share needs to increase tenfold, with battery electric vehicles set to reach 35% in just four and a half years. The remaining 10% or so of the overall 45% target will be achieved through improvements in powertrains and aerodynamics. While some EU countries, such as Sweden and the Netherlands, are leaders in electrification, others, such as Poland and Spain, are lagging far behind.
Infrastructure barriers
According to Christian Levin, there are currently fewer than 1,000 places in the EU where heavy goods vehicles can charge, and most of them lack the megawatt charging stations needed for long-distance transport. The real obstacle, however, is the connection to the electricity grid. "Even in my home country, Sweden, it can take ten years to lay a cable underground. It’s not just about building chargers, it’s about bringing electricity to them, and the permitting process is not working,” Levin added.
Economic challenges and a call for negotiations
For transport companies, the transition to electric vehicles is only justified if the economic situation justifies it, which is often not the case at the moment. In response to these challenges, ACEA has already sent a formal letter to the President of the European Commission, Ursula von der Leyen, requesting urgent negotiations and a review of the 2030 target as soon as possible.