2024-09-14 04:31:49
Due to weak demand for electric cars
VW Supervisory Board calls for looser climate targets
12.09.2024 – 22:51Reading time: 3 min.
The announced austerity measures continue to cause a stir at VW. The IG Metall union fears that “red lines” are being crossed. The supervisory board is introducing new measures.
VW Supervisory Board Chairman Hans Dieter Pötsch has called on the EU to relax the previous CO2 fleet targets for car manufacturers. “We know today that demand for electric cars in Europe is falling far short of expectations,” said Pötsch, who is also CEO of Porsche Automobil Holding, according to the speech manuscript at the “Vienna Electric Days”. “Electromobility will prevail, but it will take more time. That is why the CO2 targets for 2025, 2030 and 2035 must be adjusted and brought into line with reality.”
The background to this is the EU’s step-by-step plan to reduce CO2 emissions from new cars. The fleet targets of the individual manufacturers, which are to be achieved on average for all new cars, will be reduced by 15 percent in 2025. According to the industry, this can only be achieved with more electric cars, which will lower the average. If the target is missed, there is a risk of high fines.
“Politicians have set requirements for the industry without the necessary infrastructure being in place and without considering whether customers would go along with it,” criticized Pötsch. In order for e-mobility to prevail, more public support is needed. Instead, people are being unsettled by debates about electric vehicles and combustion engines. “But we need clarity and reliability in Europe.”
Due to the slow ramp-up of e-mobility, several manufacturers have already called for the targets to be softened or at least extended. BMW boss Oliver Zipse had already called for a change in the spring, and VW CEO Oliver Blume is also calling for “appropriate CO2 targets”. With regard to the stricter CO2 fleet target for 2025, Blume admitted at the beginning of August: “There is still a gap to be closed.” He wants to avoid fines that are due if the target is missed at all costs. “Every euro that is paid for fines is a euro poorly invested.”
Last week at the latest made it clear that VW needs to pay more attention to money. The company’s management announced a tougher austerity program and did not rule out plant closures and layoffs.
However, there has been no talk of turning away from electric cars or lowering the company’s own climate targets. On the contrary: the company recently commented optimistically on a study on customer demands regarding sustainability. “The Volkswagen Group is convinced that its commitment to sustainable solutions will open up new business areas and opportunities today and tomorrow.”
But despite all the optimism, electric cars from European manufacturers are not selling well so far. In July, only 30,762 new electric cars were registered. According to the Federal Motor Transport Authority, this was 36.8 percent less than in the same month last year. Compared to June, the number has also fallen significantly, by around 30 percent. Measured against the total number of new registrations, electric cars accounted for 12.9 percent in July 2024. This is also less than in the same period last year. In July 2023, 20 percent of new registrations were still electric cars.
The German car manufacturers are also feeling this. VW says the year started “modestly”. The group’s profit fell by four percent to 3.63 billion euros in the second quarter. Read the whole story here.
Meanwhile, the first chairwoman of IG Metall, Christiane Benner, is warning the Volkswagen Group against closing production sites. “For us, closing plants is a red line,” she told the “Handelsblatt” newspaper, according to a report on Thursday. It had already been possible to get plants that had been put on hold back up to scratch and lead them into the future. “We can do that now too,” Benner said with conviction.