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Tuesday, April 14, 2020

German Auto Industry Begs EU To Drop Tighter CO2 Emissions Targets

The German 
auto industry 
is calling for 
stricter EU climate 
requirements
to be delayed 
as auto sales fell 
to the lowest level 
in nearly three decades.

Leading industry 
and trade union 
representatives 
met with Chancellor
Angela Merkel, economy 
minister Peter Altmaier, 
and transport minister
Andreas Scheuer 
on April 1, 2020.

“This not the time 
to think about 
further tightening 
of the CO2 
regulation,” 
said Hildegard Müller, 
president of in the 
influential carmaker 
lobby group VDA.

Analysts from the 
Landesbank Baden-
Wurttemberg (LBBW)  
expect 12% to 15% 
fewer cars being sold 
worldwide this year, 
while manufacturers 
may have to pay 
15 billion euros 
in fines to the EU 
for failing to comply 
with lower CO2 limits. 

LBBW car analyst 
Gerhard Wolf 
proposed 
suspending 
fines for a year, 
slowing down 
the tightening 
of CO2 emissions
fleet limits, 
or introducing 
a bonus system 
to reward 
progress on 
green mobility.

New registrations 
of cars on 
German roads
plunged in March 
2020 to the lowest in 
almost three decades.

Sales tumbled 38% 
year-on-year, 
to just over 215,100, 
according to data 
from the KBA 
vehicle licensing 
authority.

“Necessary health policy 
measures, like the massive 
limits on public life, 
closure of car dealerships 
and limited ability to work 
in the licensing  offices” 
had braked the car trade, 
the VDA carmakers’ 
federation said.

Domestic demand
fell 30%.

Foreign orders 
were down 37%.

January-March 2020 sales 
were down 20% from 
January-March 2019.

April 2020 will be worse.