European Commission President von der Leyen said the EU would give carmakers a three-year window to meet carbon dioxide emissions targets originally scheduled for this year. Von der Leyen said the targeted changes, which would give the auto industry greater flexibility under the 2025 emissions rules, would be proposed later this month. The revisions effectively mean that automakers can miss the mark this year as long as they perform well in the next two years.
After von der Leyen's remarks, the stock prices of European automakers such as Volkswagen, Mercedes-Benz and Renault jumped, pushing the Stoxx 600 Automobile and Parts Index up nearly 3% during the session.
Von der Leyen, March 3
"The targets will remain the same, but this means more breathing space and clarity for the industry without changing the agreed targets," she told a news conference on Monday.
European carmakers are already pushing for changes to their 2025 targets as a drop in electric vehicle sales last year made the target more difficult to achieve and could incur billions of euros in fines. They could have avoided some of the fines by selling jointly with late-stage automakers, but some worry that would disproportionately benefit Musk's Tesla.
The proposed changes require approval by member states and the European Parliament.
The European Commission is scheduled to announce an action plan on Wednesday to help the troubled European auto industry. In addition to relaxing the 2025 compliance standards, there will also be long-term measures. Von der Leyen announced that the EU will establish an industrial alliance to promote technological progress, especially in the field of autonomous driving.
She also said the EU would explore direct support for battery manufacturers, including the gradual introduction of European content requirements for batteries.