Lower standards

Against China: EU plans “cheap people’s car” for everyone

Is this the salvation for the sluggish e-car sales in Europe?(Bild: Fiat)

Europe's leading car manufacturers are up in arms against the planned ban on combustion engines in 2035. Cheap competition from China, drastic US tariffs and poor economic policy make the de facto ban almost impossible. The EU Commission's answer: then just build smaller, cheaper e-cars. Krone+ has now revealed the astonishing plans for the first time - and why it is all reminiscent of the GDR Trabi and the unfortunate planned economy.

And it is moving after all: but is this brand new Commission proposal for legislation, which has been submitted to Krone+, the salvation for the slow-moving e-car sales in Europe?

Under the title "Automotive Omnibus", the Directorate-General for Internal Market and Industry is presenting a paper that will be presented to governments and industry representatives on October 2 and then discussed for two weeks. It states: "Restoring the long-term competitiveness of European industry is one of the fundamental objectives of the new Commission. A simpler regulatory framework with reduced administrative burdens is a central part of this ambition."

The plans in detail:

• Return to Euro 6
  In order to support car manufacturers in crisis, even lowering technical standards is being considered. These include the abolition of the complex and costly low-temperature tests for cars and vans as part of the Euro 7 emissions regulation. Instead, the emission limits of the previous Euro 6 regulation are to be largely retained.

• More speed again
  Other planned simplifications include the abolition of speed limits and tachograph obligations for electric vans weighing between 3.5 and 4.25 tons as well as a return to broader Euro 6 category approvals instead of individual type approvals for heavy goods vehicles under Euro 7.

• A new vehicle category
  What is also astonishing is that the plans also include a new vehicle category or sub-vehicle category in order to implement Ursula von der Leyen's announced ambitions: The aim here is to boost the production and sales of small electric cars. E-cars in Europe are to become simpler, more profitable, smaller and cheaper.

Analysis: What the plans mean now
Once again, it is astonishing how revealing it is: there is not a word about Ursula von der Leyen's promised technological neutrality and the review of the end of the combustion engine. And this despite the fact that her own EPP and the German CDU are vehemently calling for this. No one from conservative parties has even gone into the election campaign with the electric people's car. So a solo effort to distract attention?

Von der Leyen's solo effort does not even have the backing of her own conservative EPP.(Bild: AFP/SEBASTIEN BOZON)

With the very small "electric people's car", a market sector is being promoted that customers don't actually want. This can be clearly seen from the registration figures for SUVs. Otherwise, the VW Lupo, for example, would be a top seller and export hit. So it's a bit reminiscent of the planned economy of days gone by. However, the car market in Europe has always functioned well thanks to competition and innovation.

Type approvals are also primarily based on safety and environmental standards. If the Commission makes this easier for small e-cars, it is actually lowering safety standards. It also undermines confidence in electromobility. Evil tongues could say: instead of the electric people's car, it's the electric Trabi.

The focus on low-margin small cars is putting manufacturers such as Daimler, BMW, Audi, Volkswagen & Co. under pressure, as premium models are firstly the export hits and secondly the margin is also higher. As can be seen from the recent slump in profits, danger is imminent. 

The BYD Seagull would be a strong competitor for the electric people's car.(Bild: Stephan Schätzl)

Even more dependence on China
And last but not least: Dependence on China will not be reduced by a millimeter: The higher battery costs in Europe (139 dollars/kWh against 94 dollars/kWh in China) are essential, especially for small cars. China will take advantage of this by using cheap small cars (such as the BYD Seagull), cheaper batteries and state subsidies to drive European manufacturers out of their domestic market. Simplified regulations then only make it easier for them to enter the market.

Roman Haider sits on the relevant EU committee for the FPÖ.(Bild: EU-Parlament)

Outcry from the Freedom Party
The Patriots for Europe are already reacting, while the EPP wants to wait until October 2: "Ursula von der Leyen's one-size-fits-all car initiative is forcing Europe's drivers into an e-trabant, weakening our industry and opening the gates to China - a planned-economy misstep that nobody voted for," says the responsible MEP Roman Haider to "Krone".