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Automotive Industry
BMW and Toyota and auto rental and leasing firms from across Europe urged the European Commission not to set mandatory targets for electric vehicle purchases for corporate fleets, arguing it would be cripplingly expensive and counter-productive.
The EU executive is set to unveil a series of proposals on Dec. 16 that could give the European auto sector more flexibility in meeting CO2 emissions targets as well as easing an effective ban on new sales of internal combustion engine cars in 2035.
The package will also include plans for corporate fleets, such as company cars, which make up some 50 percent to 60 percent of new car sales in the EU.
In a letter to the European Commission President Ursula von der Leyen and other commissioners, the 67 signatories said the main obstacles to the uptake of EVs were purchase and operating costs and insufficient charging infrastructure.
The letter said a mandatory target would be “highly damaging” and that the high cost would leave companies with two options — retaining older vehicles for longer, or reducing new vehicle purchases.
The letter said a combination of incentives and investment in charging infrastructure is the fastest way to boost EV sales.
Incentives were also needed for the second-hand EV market, given many leased cars are often resold after two or three years.
Signatories included BNP Paribas’ vehicle leasing company Arval, Societe Generale’s Ayvens, Avis, Bolt and Hertz and some national rental and leasing associations.
By contrast, campaign association Climate Group supports a mandated target and points to more than 120 companies committed to 100 percent electric fleets, such as EDF, Ikea, Siemens and Unilever.
The EU’s automotive package, publication of which has been delayed by a week, has been subject to frenetic lobbying.
Under current plans, the EU will only allow new cars with zero emissions to be sold after 2035, effectively banning the sale of gasoline and diesel models. European automakers are calling for greater flexibility including allowing sales of plug-in hybrid cars and cars that run on CO2-neutral e-fuels to continue beyond the deadline.