EU official sees end of the road for diesel cars
BRUSSELS: European Union consumers may do as much as regulators to propel the the region’s car sector into the electricity-powered age foreseen by Tesla Inc, according to the EU’s industrial-policy chief.
European Commissioner Elzbieta Bienkowska said the EU has had a “breakthrough moment” since Germany-based Volkswagen AG admitted in 2015 that it fitted diesel engines with software to cheat US checks on smog-causing discharges of nitrogen oxides.
“This deeply affects the emotions in society toward emissions and cleaner cars,” she said.
“Diesel cars are finished,” Bienkowska said in an interview in her ninth floor Brussels office. “I think in several years they will completely disappear. This is the technology of the past.”
The auto-emissions scandal may help the EU gear up for a technological revolution in road transport. Europe is seeking to retain leadership in the worldwide market for passenger cars in the face of competition from the United States, where Tesla is based, and China, which accounts for about half of electric-vehicle sales.
VW’s cheating, which the US uncovered and led Germany to order an EU-wide recall of 8.5 million Volkswagen vehicles, pushed the world’s No. 1 carmaker into a crisis and left policymakers in Europe scrambling to patch up regulatory holes that threatened a “clean-diesel” strategy dating to the 1990s.
Bienkowska’s services were subsequently notified of possible engine-management irregularities in more diesel cars, including some made by Fiat Chrysler Automobiles NV.
The issue has been politically thorny i n Europe because around half the cars i n the region are powered by diesel — which causes more urban pollution than gasoline while having less globalwarming impact — and because many member states have struggled to meet clean-air goals meant to reduce human sicknesses and premature deaths.
“People have realised that we will never have completely clean — without NOx — diesel cars,” said Bienkowska, who comes from Poland.
This month, EU governments backed a revamp of the rules for authorising car models in the 28-nation bloc.
The European Commission, the EU’s regulatory arm, won the power to fine automakers up to €30,000 ($35,157) per faulty car and order recalls as part of the more centralised market oversight, becoming more like the US Environmental Protection Agency.
Bienkowska said “arrogance” by carmakers, coupled with their traditionally close ties to national governments, meant the draft law was initially greeted as if the industry wrongdoing had been insignificant. “Gradually attitudes changed.’’
“I am really a little bit less frustrated than I was a year ago,” she said. “During this denial phase, it was awful.”
Adding to the optimism is an initiative by the commission and industry to spur the development in Europe of batteries for electric cars, including through financing. European companies seeking to get a foothold in the market include BMW AG, Daimler AG, BASF SE and Vattenfall AB.
“We want to have the first batteries produced in Europe, but also the whole value chain,” Bienkowska said. “It’s the kind of a project that a single member state cannot afford.”
Individual European companies are doing their part too.
VW, which aims to sell as many as three million all-electric cars annually by 2025, has awarded €40 billion in contracts to battery producers. The deals take the company to within striking distance of its target to lock down €50 billion in supplies.
European electric-vehicle sales, now about 1.5% of all new registrations on the continent, will rise to about 5% in 2021 and take off from 2025, according to Bloomberg New Energy Finance.
EU policy to fight climate change may also play a role, albeit in a more nuanced way than China’s approach of imposing quotas. A draft European law to tighten caps on car discharges of carbon dioxide offers incentives for automakers to shift to electric vehicles.