Association of Automobile Manufacturers: replacement of protective measures in Europe has gone too far
The European Automobile Manufacturers Association (ACEA) has expressed concern about the inflationary impact that the continued application of EU protective measures against steel could have on prices in the European market, Kallanish notes.
In response to the new trade measures of the European Commission. However, the association says it does not dispute "the need for a certain level of protection for a raw material industry such as the steel industry." ACEA Director Sigrid de Vries notes: "But we believe that the parameters proposed by the Commission go too far in limiting the European market. In this regard, we need to find a better balance between the needs of European steel producers and consumers."
European automakers provide about 90% of their steel needs in Europe. However, a sharp reduction in import quotas and a doubling of the tariff beyond quotas to 50% will significantly limit the possibilities of easing pressure on the market through imports. Moreover, the introduction of a new rule of origin based on the "melt and pour" principle will further restrict import flows, while creating a significant administrative burden for European consumers of imported steel products.
Despite its heavy dependence on domestic steel, the automotive sector still depends on certain imported grades and quality. ACEA warns that quotas for automotive steel have been continuously exhausted for several weeks over the seven years of the current protective regime. It urges the European Commission to recognize the difficulty of applying the "melt and pour" rule of origin in "deep global" supply chains, where tracking the route of steel production is often impractical and involves the risk of disrupting established production processes.
Meanwhile, according to Transport & Environment (T&E), Europe's leading clean transport and energy group, has published an ACEA position paper stating that European automakers are being asked to find a number of loopholes in EU legislation on CO2 emissions in cars. These changes will halve the EU's target of selling only zero-emission vehicles by 2035.
The ACEA is said to be calling for more than ten exceptions, including allowing the use of alternative fuels and changing the accounting for zero-emission vehicles. The association also wants the EU to stop updating methods for measuring emissions from plug-in hybrids.
T&E claims that the abolition of the "utility factor" for plug-in hybrids in 2027 will lead to