According to a recent study cited by Europe’s automotive industry organisation on Tuesday, proposed Euro 7 emissions requirements will result in direct costs for auto makers that are up to ten times greater than those anticipated by the European Commission.

According to a study by consultancy Frontier Economics, compared to the Commission’s estimate of 184 euros per vehicle, the direct costs for petrol cars and vans to comply with Euro 7 would be 1,862 euros ($2,050) per vehicle, including type approval, investment, and equipment costs.

According to the analysis, direct expenses for buses and trucks would be on average 11,707 euros per vehicle, as opposed to the 2,765 euros estimated by the Commission.

The ACEA predicted even greater price increases for customers and businesses purchasing those automobiles.

“The European auto industry is committed to further reducing emissions,” ACEA Director General Sigrid de Vries said in a statement. “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.”

The industry is investing tens of billions of euros on electric cars (EVs), which have no emissions, therefore European automakers contend that the regulations are superfluous and too expensive.

However, according to the European Commission, the rules are necessary to reduce harmful emissions and avoid a repeat of Volkswagen AG’s infamous 2015 Dieselgate emissions scandal.

This year, parliamentarians and member states of the European Union will consider suggestions for stricter regulations on heavy-duty truck and bus emissions, including nitrogen oxide and carbon monoxide, as well as emissions from diesel cars but not from gasoline-powered vehicles.

Mid-2025 would be the implementation date for vehicles, and mid-2027 for trucks and buses.

(Adapted from Reuters.com)

Categories: Economy & Finance, Entrepreneurship, Regulations & Legal, Strategy, Sustainability