Car industry calls for shift in EU emissions targets amid slowing EV sales
Europe’s car industry has called for the relaxation of EU emissions targets after sales of electric cars stalled further in August, adding to growing political pressure that threatens to slow the transition away from fossil fuels.The European Automobile Manufacturers Association (ACEA), a lobby group, said that its members could face “multibillion-euro fines” because the shift to electric production has not been quick enough to meet the EU targets.Italy’s prime minister, Giorgia Meloni, on Wednesday criticised the EU for “self-destructive” policies on shifting to electric production and vowed to make a push to change them.Germany and the Czech Republic, two of the largest manufacturers of cars and parts, have also been increasingly vocal in asking for the rules to be relaxed.The overall European car market has been struggling.
The number of cars sold in the EU fell to 643,000 in August, down by nearly a sixth compared with last year, according to the ACEA.However, sales of electric cars fell more rapidly, by 44% compared with August 2023.The industry claims that the reason for the fall is because consumer demand has not risen fast enough, although some analysts say that manufacturers failed to invest early enough in switching to electric production and overestimated the prices they could charge.Car sales figures can be more volatile over the summer as activity dips in some countries.However, the market has been struggling over the course of the whole year, amid economic problems such as rising interest rates.
Sales were dragged down by Germany and France in particular,Germany, the EU’s largest economy, has been teetering on the edge of recession for two years, pushing Germany’s Volkswagen this month to consider closing a German factory for the first time ever,Meanwhile, France is also dealing with extended political uncertainty,Electric car sales have been under particular pressure in 2024,One major factor was Germany, the EU’s largest car market, withdrawing attractive subsidies at the start of the year.
That decision came just as demand for electric cars started to plateau.New electric cars are still, on average, more expensive upfront than their petrol or diesel counterparts – even if owners will save significant amounts of money over their car’s lifetime.Felipe Muñoz, a global analyst at Jato Dynamics, said that its data for sales across 28 European markets indicated that overall sales could fall during 2024 compared with 2023.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotion“The industry is going to face further challenges in the coming months,” said Muñoz.“Buyers are still grappling with the pressure to make the switch to electric and EVs continue to be more expensive than already-pricey combustion engine cars.
”The ACEA’s board argued on Thursday that EU emissions rules had not adjusted to “the profound shift in the geopolitical and economic climate over the past years”.As well as the economic stagnation in Europe, Chinese manufacturers such as BYD, Geely and SAIC are pushing to increase European sales.The industry could be forced into “unnecessary production cuts, job losses, and a weakened European supply and value chain at a time when we face fierce competition from other automaking regions,” the ACEA said.
Beating Aldi cashiers at their own game | Brief letters
This is a good game (Shopper’s videos of himself trying to beat ‘insanely speedy’ Aldi cashiers go viral, 16 September). My tactic is to join the queue behind an unfeasibly large trolley-load, then place items in a zigzag pattern on the conveyor. A bottle of gin halfway along gives everyone a breather as the cashier has to wrangle the security tab off, and leaving vegetables until the end allows them to be swept into one’s bags with forearms. Chris Ainsworth Rawtenstall, Lancashire There is an easy way to “beat the cashiers”: if you follow Aldi’s clearly stated request that we pack our shopping at the dedicated packing shelves rather than at the till, no problem. Those of us who do so are delighted by the rapid turnaround
Thames Water trying to stay afloat by rewriting loan deals, says source
Thames Water is trying to buy time to avoid running out of funds by rewriting loan agreements with its lenders as its future hangs in the balance, it has emerged.The troubled water company, which is struggling under £15bn of debts, is attempting to extend its “liquidity runway” after admitting it only has enough cash left to run its operations for eight months, sources have said.The struggling water company has booked dates at the high court in November to potentially gain court approval to change repayment terms, as part of its wider effort to stave off falling into a form of temporary renationalisation.Thames Water, which supplies 16 million customers across London and the Thames Valley, has said it will run out of money by the end of May next year.Its fate is one of the biggest challenges facing the government as Thames battles to raise billions of pounds in fresh funding to avoid falling into government control under a special administration regime
Bank of England governor ‘optimistic’ that interest rates can be cut, after ‘no change’ decision today – as it happened
Newsflash: The Bank of England has left UK interest rates on hold.At its latest meeting, the Bank’s Monetary Policy Committee voted to leave interest rates at 5%, resisting any temptation to cut rates for the second meeting running.The vote means no fresh relief for borrowers (even as defaults on direct debits rise), a day after the US central bank cut its rates for the first time in four years.The decision comes a day after UK inflation stuck at 2.2% in August, above the Bank’s 2% target, with a rise in both core inflation and services inflation
Why is the Bank of England being cautious in delaying rate cuts?
After the Federal Reserve’s monster 0.5 percentage point cut in US borrowing costs on Wednesday, it seemed strange that the Bank of England should sit on its hands and keep interest rates on hold.From a position earlier this year when the UK’s central bank was leading the way in cutting interest rates, it is now a laggard.The European Central Bank is also ahead, having cut twice over the summer months, matching the half a point reduction made by the Fed.Walking a different path, the Bank’s monetary policy committee (MPC) has kept interest rates on hold at 5%, which now ranks as the highest among major economies
Car industry calls for shift in EU emissions targets amid slowing EV sales
Europe’s car industry has called for the relaxation of EU emissions targets after sales of electric cars stalled further in August, adding to growing political pressure that threatens to slow the transition away from fossil fuels.The European Automobile Manufacturers Association (ACEA), a lobby group, said that its members could face “multibillion-euro fines” because the shift to electric production has not been quick enough to meet the EU targets.Italy’s prime minister, Giorgia Meloni, on Wednesday criticised the EU for “self-destructive” policies on shifting to electric production and vowed to make a push to change them. Germany and the Czech Republic, two of the largest manufacturers of cars and parts, have also been increasingly vocal in asking for the rules to be relaxed.The overall European car market has been struggling
JP Morgan creates new role to prevent overwork among junior bankers
JP Morgan has created an international role to oversee the “wellbeing and success” of junior bankers after renewed concerns over the health and safety of overworked staff across the industry.Ryland McClendon, its head of diversity and inclusion, has been appointed as the bank’s first “global investment banking associate and analyst leader”, referring to its most junior ranking staff.“In this role, Ryland will be responsible for leading our associates and analysts globally. She will help to support their wellbeing and success, as well as equip and enable them to deliver for our business, clients and each other,” the bank said in an internal memo seen by the Guardian, and first reported by CNBC.McClendon will be based in New York but is expected to travel to JP Morgan’s other global hubs, including London, as part of the role
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