Carmakers say plans to decrease air air pollution limits would price them an excessive amount of, however new evaluation reveals European automotive producers are making file income and paying out unprecedented quantities to CEOs and shareholders. Collectively, Europe’s 5 huge carmakers have greater than doubled their annual income since 2019 to €64 billion. Transport & Atmosphere (T&E) stated the automotive {industry}’s combat in opposition to tighter air pollution guidelines places company greed earlier than public well being.
Present EU proposals to tighten air air pollution guidelines would price at most €150 per automotive. Lawmakers are debating the brand new “Euro 7” limits for poisonous emissions from street transport which trigger 70,000 untimely deaths yearly. T&E is advocating extra bold air pollution limits which might price Europe’s largest carmaker, Volkswagen, €5.7 billion over all the lifetime of the regulation — simply 37% of its 2022 income, based on the evaluation. The EU Fee has proposed weak guidelines which fall far wanting its personal specialists’ suggestions and keep the identical emission limits set for petrol automobiles greater than a decade in the past. However even this proposal is opposed by the automotive {industry} which claims it might be too costly to adjust to.
The 5 greatest European carmakers have all elevated their revenue margins since earlier than the pandemic regardless of promoting 25% fewer automobiles total. BMW virtually tripled its revenue margin in 2022 in comparison with 2019 whereas Stellantis greater than doubled its margin — as a part of an industry-wide change from promoting extra mass-market automobiles to promoting fewer however costly premium automobiles. T&E stated carmakers are scrapping extra reasonably priced automobiles just like the Fiat Punto for the sake of income, however they nonetheless argue that EU air air pollution guidelines would make automobiles too costly for abnormal drivers.
Anna Krajinska, car emissions and air high quality supervisor at T&E, stated: “We don’t begrudge carmakers their file income, however claims that they can not afford low cost air pollution fixes are merely company greed. The auto {industry} is maximising income by promoting dearer premium automobiles whereas on the similar time pretending air pollution guidelines would make automobiles unaffordable. EU lawmakers must put public well being earlier than the {industry}’s cash seize.”
The 5 corporations are additionally paying out €19.7 billion in shareholder dividends and €7.5 billion in inventory buybacks this yr, aimed toward boosting their share worth. Stellantis plans to spend €5.7 billion on dividends and shopping for again shares — greater than the entire price for the carmaker to adjust to tighter air air pollution guidelines. T&E stated it exposes as false the carmakers’ claims they can not afford to spend money on air pollution management upgrades as a result of it might syphon investments away from electrification.
Whereas auto corporations have prioritized promoting extra worthwhile automobiles, government pay has ballooned 50% on common because the yr earlier than Covid. Stellantis CEO Carlos Tavares was paid €14.9 million final yr — virtually twice as a lot as when he was head of its precursor, PSA, in 2019. Mercedes boss Ola Källenius made 75% extra final yr than in 2019. Solely Volkswagen head Oliver Blume made much less in 2022 than his predecessor in 2019, however the firm is planning to extend his most pay by 1 / 4.
T&E referred to as on the European Parliament and EU governments, that are debating the proposed Euro 7 air pollution guidelines, to lift their ambition to a minimum of be according to the EU Fee’s personal affect evaluation. The foundations will regulate the poisonous air pollution of the 100 million automobiles anticipated to be offered earlier than the EU’s 2035 phase-out of combustion engines — and maybe even later if e-fuels powered automobiles are offered.
Anna Krajinska stated: “Automobile corporations in one of the best of monetary well being shouldn’t be allowed to hazard public well being whereas paying out billions to shareholders. These are the final tailpipe air pollution guidelines carmakers will ever must adjust to. It’s our solely probability to chop poisonous emissions from the 100 million polluting automobiles nonetheless to be offered.”
Learn extra: Evaluation: Euro 7: Carmakers’ file income made at expense of human well being
Courtesy of Transport & Atmosphere (T&E).
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