Germany has joined the fight against fines for carmakers that lack net zero targets as the Government is forced to restore Britain’s electric car mandate.
Olaf Scholz, the German chairman, criticized the EU’s plan to impose fines on manufacturers who miss carbon reduction targets – saying companies should be able to invest in cutting emissions.
“This money should remain in companies in order to improve their industry, their company,” Mr. Scholz said.
The comments add to the pressure on zero emissions, which automakers say is becoming increasingly rare as the majority of drivers eschew electric vehicles.
Last week, Louise Haigh, the Transport Secretary, held talks with car manufacturers in Downing Street and promised to work with the industry amid growing discontent over the UK’s own zero emission vehicle (ZEV).
The EU is introducing emissions penalties that the car industry says could cost billions of euros.
From next year, carmakers must reduce the average emissions of the cars they sell by 15pc compared to 2021 levels as the EU moves towards a total ban on petrol cars by 2035.
Automakers have pleaded for “immediate relief measures” due to declining consumer demand for electric vehicles, which is helping to lower average emissions.
The companies also said that some “important conditions” such as charging infrastructure that would promote EV sales are not in place.
Robert Habeck, Germany’s economy minister, suggested on Monday that the fines could be suspended next year if manufacturers make a difference in the coming years.
Germany is expected to hold federal elections early next year the collapse of the federal government led by Scholz earlier this month.
Net zero regulations can be an important decision topic due to the importance of the car industry to the German economy.
Mr. Scholz’s comments add to growing concerns about EU policies. Giorgia Meloni, Italy’s prime minister, said the 2035 ban was “self-defeating” and Italian ministers called for an urgent review of the rules.
In Britain, car manufacturers face a fine of £15,000 per car if they fail to meet the target of 22pc of sales being electric cars this year, rising to 28pc next year.
Last week, Ford said it would cut 800 jobs in Britain, in part blaming the crime.
Nissan has warned that the rules risk causing “irreversible” damage to the UK car manufacturing industry.
The Ministry of Transport said it planned to work “constructively and collaboratively with the sector” and suggested it could ease the rules, but said the Government was sticking to plans to reverse the ban on petrol cars by 2030.
The incoming Donald Trump administration is planning to end subsidies for the sale of electric vehicles.
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