Home Money Europe wanted to lead the world in electric vehicles. Your automakers can’t keep up

Europe wanted to lead the world in electric vehicles. Your automakers can’t keep up

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Europe wanted to lead the world in electric vehicles. Your automakers can't keep up

With sales and production of electric vehicles in Europe lagging in comparison, a blame game has emerged between automakers and policymakers. “A regulatory framework that ignores customer needs and market realities – and at the same time is unable to create the necessary conditions for alternative technologies – cannot succeed,” a BMW spokesperson said in a written statement to WIRED. , explaining that the company is opposed. to the 2035 ban. He added that unless “charging infrastructure, availability of renewable energy and access to raw materials are addressed”, the ban will cause “the entire vehicle market” to contract.

Since the automobile industry employs 13.8 million people across Europe and accounts for around 7 percent of the continent’s GDP, such a contraction would be economically disastrous.

Poor car sales have already led Volkswagen to announce closure plans. at least three factoriesraising anxiety in Germany about the country’s economic prospects. The far-right political party Alternative for Germany (AfD), which currently second in the polls ahead of Germany’s snap general election in February 2025, does not support a ban on combustion engines and has made the perceived economic cost of environmental policies a key part of its message.

“Let’s be clear: consumers simply do not believe in electric mobility,” says Beatrix Keim, director of CAR Center for Automotive Research. “The vehicles are considered too expensive, people are worried about battery safety and also charging costs.” She believes both politicians and industry have a role to play in changing this, both through subsidies and investments in infrastructure such as charging solutions, as well as by creating cheaper vehicles. “It could be tactical pricing, discounts, markdowns or simply cutting prices altogether, which of course needs to be balanced against financial gains,” he says. “But overall, (both) need to make the public better understand electric mobility and clear up some of the myths, such as battery safety.”

In a bid to keep their factories and technologies alive, some European automakers have floated the idea of ​​“clean” fuels as a means of continuing to sell combustion engine cars after the 2035 deadline. Germany has been at the forefront of this, campaign successfully in 2023 so that vehicles that run on “electronic fuels” are exempt from the ban. E-fuels, which are still in the research and development phase, are made from a combination of hydrogen and carbon dioxide and, according to their proponents, emit far fewer emissions than gasoline.

However, not all industry experts are convinced. “E-fuels are complete nonsense,” says Peter Mock, European director general of the International Council on Clean Transportation. “The efficiency of those fuels is terrible, which means the prices are very high and will continue to be high.” In addition to this, he believes that talking about alternative fuels is confusing for consumers, which could further harm sales of electric vehicles. “Electric vehicles are simply the most efficient, cheapest and most convenient means of transportation, and we need to communicate that,” he says.

Of course, the 2035 ban will only apply to European Union countries, while automakers on the continent will continue to sell globally. One solution could be a pivot toward U.S. markets, where predictions for electric vehicle sales under Trump are different. is already being cut.

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