On the Move, April 8 - 14, 2024

Euro 7 regulation sets new emission and durability standards for vehicles

The Council has adopted the Euro 7 regulation, which sets new emission limits and durability standards for vehicles, including cars, vans, and heavy-duty vehicles. This legal act maintains the current Euro 6 limits for car exhaust emissions but introduces tougher standards for solid particle emissions and mandates stricter emission limits for heavy vehicles. Additionally, the regulation imposes new limits on particle emissions from brakes and enhances battery durability requirements. The regulation will gradually come into effect over the next 30 to 60 months, depending on the vehicle type, following its publication in the Official Journal of the European Union.

Stellantis commits to Italy with massive investment and new models amid Chinese competition fears

Stellantis CEO Carlos Tavares has firmly dismissed rumours of the company exiting Italy as "fake news", confirming an investment of over €5 billion and the launch of 15 new models in the country.

This commitment includes the creation of a gigafactory for batteries and the development of two new platforms. Addressing concerns over Chinese automakers' influence, Tavares asserted that unlike Volvo and MG, Stellantis brands like Alfa Romeo would not fall into foreign hands. He acknowledged the competitive pressure from Chinese EV manufacturers, hinting at tough decisions ahead to maintain market share. Tavares's stance is echoed by Renault CEO Luca de Meo , who is also preparing to defend against the influx of Chinese EVs in Europe.

Global emissions edge towards historic decline marking a turning point for the planet

For the first time in modern history, global emissions are poised to stop rising and may begin a long-term decline as soon as this year, thanks to increased energy efficiency, a shift from coal to gas, and a growing reliance on renewable energy.

This milestone, which could occur if current green energy trends persist and efforts to reduce gases like methane are successful, may alter the political, psychological, and financial landscape of climate action. Economists and analysts suggest that a decrease in emissions could demonstrate the feasibility of combating climate change, influence investment away from fossil fuels towards green energy, and challenge the defeatist attitude towards emission reduction efforts, particularly in countries leading in green energy transition.

Electric vehicle revolution hits a roadblock

The electric vehicle shift is stalling as European ports face congestion from imported EVs and global giants like Tesla and 比亚迪 see declining sales. Buyers are hesitant due to high EV prices and insufficient charging infrastructure.

The industry's slowdown has led to calls for greater collaboration between governments and automakers to overcome adoption barriers, emphasising the need for economic and reliable charging networks and possibly public investment to sustain the green transition.

Volkswagen slashes prices to fuel China sales surge amidst European EV dip

Volkswagen has seen a surge in sales in China, with a nearly 8% increase in vehicle deliveries, driven by price cuts, including a 91% jump in electric vehicle sales. This growth counters a competitive price war with local and international carmakers.

However, in Europe, VW faces challenges as EV sales fall sharply, a consequence of reduced consumer subsidies and a potential stagnation in demand. The contrasting scenarios highlight Volkswagen's strategic pricing adjustments in China and the pressing need for electrification progress in Europe to avoid penalties under stricter CO? emission targets.

European ports become makeshift car parks amid import glut

European ports are facing severe congestion as imported vehicles, notably electric cars from China, accumulate due to sales slowdowns and logistic challenges, including a shortage of truck drivers.

Some Chinese EVs have been left in ports for as long as 18 months, with carmakers struggling with after-sales services and logistical operations. The problem is exacerbated by a lack of available transportation and a competitive environment for haulage, notably impacted by Tesla 's reservations. This congestion reflects broader challenges in the global car transportation system, affected by increased Chinese exports and geopolitical tensions.

Nissan and Honda join forces against Chinese EV tide

Facing the rising challenge of high-tech, low-cost electric vehicles from China, 日产 and Honda , Japan's second- and third-largest carmakers, are setting aside their long-standing rivalry to collaborate on electric car development. Despite their differing corporate cultures and historical approaches to growth, both companies recognise the urgent need for scale and resource sharing to remain competitive.

The partnership marks a shift from their traditional strategies, as they explore cooperation in software, core EV components, and auto-intelligence technology, amidst industry-wide pressures to accelerate the electric vehicle transition.

Carmakers cash in as wealthy buyers demand unique vehicles

The demand for hyper-personalised cars is surging, with wealthy customers pushing the limits of customisation, leading carmakers like Ferrari , Bentley, and Rolls-Royce to enhance their profitability. Ferrari's profit soared to record levels last year partly due to customisation, while Bentley's profits increased, driven by extravagant spending on unique features. Rolls-Royce has established a division solely to manage bespoke requests, frequently pushing the prices of their cars above ￡1 million. This trend has intensified post-pandemic, dubbed the 'YOLO effect,' where affluent buyers are more eager to indulge in luxury customised vehicles as a form of enjoyment and personal expression.