European carmakers call for urgent progress on EU auto package

European vehicle manufacturers have called for urgent progress in negotiations on the EU’s automotive package, warning that greater regulatory certainty is needed to support the industry’s transition to zero-emission mobility while protecting jobs and competitiveness.

The call follows a meeting of ACEA’s Light Duty Vehicle Board in Brussels, where manufacturers highlighted the need for a more pragmatic regulatory framework that balances decarbonisation targets with economic security, consumer choice and the realities of industrial investment.

“Now it’s time for the EU to reform the legislative framework so that it will help achieve the triple goal of decarbonisation, economic security and job preservation.”

ACEA argues that emissions targets backed by financial penalties alone will not deliver the transition, calling instead for a market-based approach that provides manufacturers with greater flexibility and sufficient time to invest in new supply chains.

The association wants a long-term policy framework that recognises the contribution of renewable fuels and green materials towards CO2 emissions reductions.

Among its proposals is a five-year emissions averaging mechanism starting in 2028, which ACEA believes would encourage earlier electric vehicle sales without requiring additional government expenditure.

It is also calling for adjustments to the emissions reduction trajectory for vans, recognising that the segment is starting its transition from a lower base than passenger cars.

Greater incentives for European manufacturing

ACEA has also urged the EU to ensure that the proposed Industrial Accelerator Act (IAA) reflects the practical challenges of developing European automotive supply chains.

The association is seeking a realistic implementation timetable and additional incentives to encourage manufacturers to localise production.

Under its proposals, all battery-electric cars and vans manufactured in the EU would qualify for additional regulatory credits, known as super-credits, with further incentives for smaller vehicles.

ACEA also wants the geographic scope of the legislation to recognise existing manufacturing investments in neighbouring countries, including provisions that would allow the UK to be included.

The association said these measures would help strengthen Europe’s automotive manufacturing base and support investment in new technologies and supply chains.

With negotiations continuing, ACEA is pressing EU policymakers to deliver a regulatory framework that supports the transition to zero-emission vehicles while maintaining the competitiveness of European manufacturers and safeguarding employment across the automotive industry.