As part of a new free trade agreement due to be signed with the European Union, Canada will remove its 6.1 percent tariff on imported vehicles from the European Union, while the EU will remove its 10 percent duties on autos and and its 4.5 percent duty on parts.
In a sign that the European automobile market may finally be recovering, new car registrations in September were up 5.5% from the year before. Sales in the UK and an extra sales day in the month were factors but industry analysts say that things have finally bottomed out in Europe. Year to date sales were still down, -4% to 9.34 million cars, still on track to be the worst year in two decades.
After the longest European recession since the adoption of the euro currency ended with GDP growth in the second quarter of this year, demand has increased but when car sales were down in August, there was concern. With September sales up, industry watchers now think the August decline was just a blip. (Read More…)
After months of intense lobbying, Germany has convinced European Union environmental ministers to keep 2020 new car carbon dioxide emissions standards at 130 grams per kilometer instead of the proposed, stricter 95g/km standard. The German government argued that the tighter regulations would cost jobs and hurt German automakers. BMW and Mercedes-Benz produce larger and heavier cars than other European car companies like Fiat and Renault and they would have a more difficult experience trying to meet the new CO2 standards.
After lobbying by Germany, the governments of the European Union have for the third time delayed implementation of carbon dioxide emissions targets for Europe’s new cars. The proposed limits would have been reduced CO2 emissions from new cars to 95 grams per kilometer.
The European Union Commission has pushed back against reports from within the UK government that the EU was considering implementing devices in private cars that would prevent them from exceeding the speed limit, calling the reports “inaccurate beyond the limit”. In an unsigned statement on the EU’s official blog, the EU obliquely criticizing the British government and suggested that the British media deliberately misrepresented the EU’s position. The remarks denied that any such proposals or even non-binding recommendations are “in the pipeline”. The full statement is below the jump. (Read More…)
While Americans have an image of Europe as the place of autobahns with unlimited speeds, if a new proposal by the European Commission’s Mobility and Transport Department is approved, all cars on the continent could be fitted with devices that limit top speed to 70 miles per hour. Cars would possibly be equipped with cameras that would read speed limit signs on roads and apply the brakes if the legal limit is exceeded. The goal is to reduce the 30,000 annual traffic deaths in Europe by a third. The regulations would not just apply to new cars sold in Europe. Used cars would have to be retrofitted. (Read More…)
Europe’s second biggest automaker, PSA Peugeot Citroen, has gotten approval from the European Union for the French government to guarantee $9.28 billion (7 billion Euros) in bonds to provide Banque PSA Finance, the car maker’s finance arm, with funds so they can sell cars on credit at competitive interest rates.
The regulatory and verbal war between France and Germany over Mercedes-Benz’s refusal to switch to the R1234yf air conditioning refrigerant has escalated. After a French court ordered a 10 day stay, lifting that country’s ban on R134a equpped A Class, B Class, CLA and SL cars made since June, Daimler expressed confidence that the French government would abide by that ruling. That confidence was apparently badly placed because the French government has now invoked a “safeguard procedure” of the EU that allows member countries to act unilaterally to avoid a serious risk involving the environment, public health or traffic safety, reinstituing the ban. Daimler promised that it would continue fighting to allow the sale of those cars in France. It claims that the new refrigerant is dangerously flammable and toxic. (Read More…)
After a French court lifted that country’s ban on Mercedes-Benz cars equipped with R134a air conditioning refrigerant, saying that the French ministry for the environment must reevaluate their decision to block those cars, Daimler said that it was “very confident’ that the French government will abide by that court ruling. R134a has been banned for use in new model cars by the EU since the start of 2013.
Last week, the European Union Commission’s Technical Committee on Motor Vehicles meeting affirmed France’s refusal to allow Mercedes-Benz to sell cars using R134a refrigerant, and alsom indicated that other EU countries may block the sale of those cars as well. Now, Honeywell International, which owns the rights to R1234yf, (the only refrigerant currently approved by the EU) said that Daimler’s concerns are unfounded. M-B had run tests showing that under certain circumstances, leaks in the air conditioning system could cause underhood fires, and that when it burns, R1234yf produces poisonous hydrogen flouride gas.
When we last reported on France banning some Mercedes-Benz vehicles because the company refuses to use the now mandated R1234yf refrigerant, representatives from all 28 EU member states were scheduled to meet with the EU’s Technical Committee on Motor Vehicles to discuss the matter, particularly as it regards the sale of M-B vehicles in the 27 other EU countries besides France. That meeting has since taken place and according to a memo issued by the European Commission, those representatives have confirmed that all new vehicles sold throughout the EU must use R1234yf, and that any vehicles with the now banned R134a must be withdrawn from the market in all EU states. The dispute is over the fire safety of the new refrigerant. R134a was banned because it is considered a greenhouse gas. (Read More…)
The EU Commission has provisionally sided with France in that country’s decision to stop the sale of new Mercedes-Benz cars because of Daimler’s decision to continue to use R134a refrigerant in it’s HVAC systems. The EU has banned R134a out of concerns for global warming. The only available replacement that meets the new regulations is R1234yf, made by Honeywell, and Mercedes-Benz has insisted that their tests show that the new refrigerant is dangerously flammable and could start an underhood fire under certain conditions. The provisional ruling could be a problem for Daimler in other EU countries.
In the face of potential CO2 regulations that would mandate tough emissions regulations for new cars in the Eurozone, Germany is doing its best to shut them down completely. And the rest of the EU, along with some OEMs, are not happy about it.
Senior members of the German government are leaning heavily on EU member states, warning “that German automakers could scale back or scrap production plans in their countries unless they support weakened carbon emissions rules,” Reuters writes. Cabinet members are said to focus their strong-arming on EU countries that recently have been bailed-out, mostly with German money. “They have tried everything at the highest level to pressure member states, in particular countries in the bailout club, to support their proposals,” a diplomat told Reuters. The EU Parliament is set to finalize rules that set a 95g CO2 / km limit by 2020.
The fight however seems not so much a quest for cleaner air than an underhanded fight for more breathing room for the auto industries of some member states. (Read More…)
Some folks still desperately stick to the fairy tale that the Japanese car market is closed. The same people became excited when European carmakers complained about different Japanese technical regulations – something that was sold as “proof” for Japan walling up its market against foreign imports. The same people claim the U.S. market is open wider than the happy hooker. Not if you ask European carmakers again. Said the European carmaker association ACEA: (Read More…)