European Union

Brussels gives in to car manufacturers and relaxes automotive pollution limits

Vehicle manufacturers will avoid multi-million-dollar fines for not complying with the emissions limits initially planned.

Industrial difficulties are one of the causes of the eurozone recession. Pictured: a car factory in Zwickau, Germany.
01/04/2025
2 min

BrusselsPressure from major companies European car manufacturers have had an effectThe European Commission proposed this Tuesday to relax pollution limits for combustion vehicles and give the industry more time to transition to electric cars. With this initiative, Ursula von der Leyen asserts in a statement that she aims to prevent the fight against climate change from negatively affecting the competitiveness of European industry compared to China and the United States. "We will demonstrate that decarbonization and competitiveness can go hand in hand," the head of the EU executive points out.

In this way, Brussels proposes that the European Union postpone for three years the entry into force of sanctions on automotive groups that do not comply with CO₂ emissions standards. They were scheduled to begin applying this year and required all car companies to reduce pollution by 15% compared to 2021. Later on, these emission reduction rates will increase, reaching 55% in 2030 and 100% in 2035.

Thus, any excess pollution that car companies cause will have to be offset during 2026 and 2027, and over the three years as a whole, they will need to reduce emissions by at least 15% compared to 2021. In total, according to the same automotive associations' calculations, vehicles will save around €16 billion in fines that should have been paid to the European Commission for failing to comply with CO₂ emission limits.

In fact, both the Catalan brands Seat and Cupra, as well as their parent company, Volkswagen, would have been seriously affected by the entry into force of the stricter limits that the EU intends to eventually lift. As is the case with most car manufacturers in the community club, the production of electric vehicles by these companies is not yet sufficient to offset the emissions from combustion vehicles.

It should be remembered, however, that the European Commission's proposal is still being negotiated and validated by the EU Council, where the member states are represented, and the European Parliament, where there is a priori a clear will—the right and far right already have a majority—to curb the green agenda and the fight against climate change. In any case, Brussels asks them to process the new initiative as soon as possible to avoid harming the EU automotive sector, which is in crisis.

Spain extends the electric car subsidy plan

The Spanish government has approved the extension of the Moves III plan, which subsidizes the purchase of electric and hybrid cars, through 2025. In this way, the Moncloa government aims to continue promoting the purchase of non-combustion vehicles and the installation of charging stations. And, although the initiative had been shelved since January due to its derailment in the Congress of Deputies, the aid program will be retroactive to January 1, 2025, and will last for the entire year. It is endowed with €400 million and also includes an extension of tax deductions for income tax returns: 15% for personal income tax, according to the Spanish government. Nuria Rios from Madrid.

Brussels fines 15 major European car manufacturers €458 million for a car recycling cartel.

The European Commission fined 15 of Europe's largest automakers and the sector's main trade association, ACEA, €458 million this Tuesday for operating as a cartel in car recycling between 2002 and 2017, preventing competition from entering the industry. Among the most affected companies are Volkswagen, with a fine of more than €127 million; Renault-Nissa, which will have to pay €81 million; Stellantis, almost €75 million; and Ford, which is stuck with €41 million. Mercedes-Benz, on the other hand, managed to avoid the fine of approximately €35 million that Brussels would have imposed for revealing the cartel and collaborating with the EU authorities. Opel, Mitsubishi, and Ford also had their fines reduced for the same reason.

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