Welcome to the Daily 5 report for Monday, Dec. 8.
After last week's widely expected news that the Trump administration is proposing relaxed U.S. fuel-economy standards, several developments in Europe signal dissatisfaction in that market's regulatory landscape.
Stellantis CEO Antonio Filosa is calling for the EU to relax emissions rules for commercial vans, supercredits for small cars, a role for sustainable fuels and measures to help owners of older cars trade them in for newer, cleaner models.
Filosa spoke on Dec. 4 at a Goldman Sachs investor event, six days before the European Commission could release a package of measures to boost the European auto industry. That date is looking increasingly in doubt as stakeholders remain divided on key issues, but most parties expect a proposal in the coming weeks.
The auto industry is broadly united around the need for what it calls "technology neutrality," which would allow sustainable fuels and a pathway for hybrids after 2035. It is also asking for an earlier review of the 2030 and 2035 CO2 targets, arguing that it cannot sell enough full-electric cars given the current rate of adoption.
For more, read Peter Sigal's report here.
Meanwhile, Bloomberg News reports that six European Union leaders — representing Italy, Poland, Slovakia, Hungary, Belgium and Czechia — have asked the European Commission to propose softening the bloc's vehicle emissions rules to halt a de facto ban on combustion engines planned by the middle of the next decade.
Prime ministers demanded that an upcoming revision of EU rules for new cars allow plug-in hybrids, range extenders and fuel-cell technology even after 2035, according to a letter to commission President Ursula von der Leyen seen by Bloomberg.
"We are at a turning point both for the EU automotive and car components industry and for the European climate action," the leaders said. "We can and we must pursue our climatic goal in an effective way, while not killing our competitiveness in the meanwhile since there is nothing green in an industrial desert."
Europe's high energy and labor costs are forcing automakers to cut jobs and shift investments elsewhere. The French government has instead prioritized a "European preference" for electric vehicles in a bid to avoid job losses.
Automakers such as Stellantis, Volkswagen and Renault are seeking clarity on the fate of the ban as they plan future investments.
Back in North America, there has been much consternation caused by EV ambitions that mismatch EV demand.
According to this report by Greg Layson, a number of Canadian auto retailers who have poured millions of dollars into store upgrades to get them ready to sell EVs haven't seen a return on investment.
For example, Doug Green, dealer principal at High Country Chevrolet-Buick-GMC in High River, Alberta., said he lost money on costly infrastructure required by General Motors.
Testifying before Canada's Standing Committee on Environment and Sustainable Development on Nov. 6, Green said he spent $200,000 on upgrades such as chargers, a heavy-duty hoist to service heavier EVs, a battery table, a forklift and trenching to run lines for more electrical capacity. When they were complete, he showcased the renovations and a trio of new electrified GM vehicles: the Equinox, Blazer and Hummer.
"When EVs first came on site, I was excited. I invited 1,000 of my customers to come in for a ride and test-drive day. Thirty customers showed up. At the end of the day, not one person was interested in buying them."
That's all for now. Enjoy the rest of your day. If you want to view this story on your browser, click here.
— Omari Gardner, director of content and commentary
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