Automakers whine about €15B fine they knew they’d risk for pushing gas cars
Renault CEO Luca de Meo said today that automakers collectively may need to pay ~€15B in fines if they miss 2025 emissions targets, as they’ve failed to ramp up efficient vehicle production in line with EU guidance – even as consumer EV demand continues to rise in Europe.
At issue are Europe’s 2025 CO2 targets, and a penalty calculated based on fleet average CO2 emissions per automaker.
By 2025, automakers are supposed sell vehicles with average emissions of 93.6g/km or lower. If an automaker fails to meet this legal target, which was established in 2017, it may have to pay a fine of €95 per gram of CO2 per car.
The potential fines vary by automaker, with some automakers close to meeting the targets and some far away. Multiple automakers have already met the targets, namely Tesla and Volvo, who are well under the requirements. And some are close to meeting them due to high EV or hybrid mix, like Kia, Hyundai and Stellantis. These companies risk a fine of a few hundred euros per car if their fleet emissions remain at 2023 levels.
Worst off are Ford and Volkswagen, which have a longer way to go before meeting 2025 targets. These companies could risk fines of €2,000+ per car, given their current levels of noncompliance.
de Meo tries to avoid blame for fines industry knew were coming
Today, Luca de Meo, who is CEO of Renault and also head of the European Automobile Manufacturers Association (ACEA), said to Inter radio in France that fines could total €15 billion if fleet emissions remain at today’s level, or that automakers would need to give up the production of 2.5 million polluting vehicles in order to come into compliance.
de Meo said “the speed of the electric ramp-up is half of what we would need to achieve the objectives that would allow us not to pay fines,” notably using the words “the electric ramp-up” instead of “our electric ramp-up” in order to suggest blame could come from external factors instead of from the industry itself.
de Meo went on to beg for “flexibility,” saying “setting deadlines and fines without being able to make that more flexible is very, very dangerous.”
Notably, these targets were established in 2017, which is more than enough time for automakers to know what they need to do, and were already subject to interim evaluation in 2023.
The average car development cycle is about 7 years long from start to finish, so even if automakers waited until after the 2017 regulation was adopted (which would have been folly, since both climate change and the necessity of the EV transition have been obvious since well before then), they still had plenty of time to bring new models to market that would be ready today.
de Meo isn’t the only automaker head who has repeatedly called for 11th-hour flexibility on targets they knew about 8 years ahead of time. BMW CEO Oliver Zipse has also called for a review of the targets.
But the ACEA, which de Meo is also the head of, says the 2025 targets should remain unchanged, saying “any change to this would not leave enough time to adapt due to vehicle development and production cycles.”
And Transport & Environment, in an April 2024 analysis, showed that these targets are still reachable, just that automakers have put in little effort to reach them yet.
In previous years, automakers made the same complaints that new targets would be hard to reach and that they risked fines, begging for leniency instead of just putting in the work needed to meet them. Then, miraculously, when the time came for regulations to go into place, their fleet emissions dropped precipitously from their previous plateau to meet the new targets. It’s almost like the effort was possible all along. I wonder if the same is true here…
Electrek’s Take
To be clear: I have absolutely zero sympathy for any automaker who was given years of notice that they would be fined for poisoning the world’s climate, and yet continued to do so and are now asking for lenience. You broke the law, the law is a good law (which could be better), you had plenty of time to get ready for it, and you failed to do so.
One attempted argument from the automakers is that “demand has cooled” for EVs and that it’s not the automakers’ fault, but this is incorrect. EV sales continue to go up, not down (+11% year-over-year in Q2 2024), which means demand continues to rise, not shrink, in spite of the many incorrect headlines stating otherwise. Hybrid sales are also up in the EU (+21% in Q2), which also helps increase fleet efficiency, though not as much as EV sales do. Meanwhile, gas car sales actually are slowing (-2% in 2Q).
One reason this rising EV sales tide hasn’t lifted European automakers’ boats as much as it might have is because many of those EV sales are taken up by upstart automakers, whether it be in the form of Tesla which has Europe’s best-selling vehicle, or Chinese brands which are exporting affordable EVs into Europe after that country’s auto industry actually committed to building cleaner, more futuristic vehicles rather than waffling and begging regulators to protect them while they pollute just a little bit more please. Indeed, the two brands that got busy exceeding targets instead of whining are listed in this paragraph – Tesla, and Volvo (owned by Geely, a Chinese firm).
Also, all the above Q2 sales growth numbers could (and should) be higher in magnitude, if it weren’t for automakers’ intransigence. These numbers are your responsibility to move, not anyone else’s.
Customers will buy the products they’re shown – it’s your job to create demand (after all, you’ve spent the last century trying to reorganize all of society around more and more wasteful, oversized vehicles in the first place), it’s your job to build the products, and it’s your job to scale them to affordable prices.
You have known this was your job for many years now, if not decades. And you didn’t do it.
And it’s not an impossible job either. Not only has Tesla already met the targets (despite its CEO losing his way on climate change), but so has Volvo (despite its recent misguided EV backtrack) – showing that both a new(ish) startup and a company with an established, decades-old gas car business can both exceed these targets, and do so by a longshot.
So, everyone else that’s complaining is simply doing a subpar job of it. These automakers have failed to cross a bar that is demonstrably crossable, and will be penalized for it if they don’t clean up their act immediately, just as they should. They continue to build and advertise cars that poison the world, that destroy nature, that threaten and will lead to mass displacement of vast swaths of the human population, and so on, and they absolutely should have to pay for it – and frankly should feel relieved that they’re not being made to pay more.
If they don’t want to pay the price they’ve brought upon themselves, they’re welcome to stop building, advertising, and lobbying in favor of cars that poison the world anytime. Nobody’s making them spend the tens of billions they spend advertising gas cars to Europeans every year.
FTC: We use income earning auto affiliate links. More.
The e-bike industry has stalled a little bit in terms of features, and with harsh new legislation coming in from places like California, maybe it is time to start looking at e-bikes that are light, efficient, and smooth rather than how much wattage they can output. The Tenways CGO 600Pro, which comes in at just 37 pounds, is a model e-bike you should keep an eye on…
The CGO 600Pro comes in 2 flavors: a carbon belt single-speed version that Micah reviewed and this one, which is a chain and 8-speed Shimano gears. The belt drive is going to win out on simplicity and weight but if you are expecting to get close to the ‘class 1’ top speed of 20mph or need to go up some significant hills, you’ll want to opt for the chain/gear version here.
One thing I love about this bike is the tradeoff decisions. These keep the price low and weight down while still providing a great ride. The spec sheet overall is solid but not top-shelf.
Tenways CGO600 Pro tech specs (chain/geared version)
- Motor: 350 Watt rear hub motor with 45 Nm of torque
- Top speed: 20 mph (32 km/h)
- Range: Claimed up to 53 miles (85 km)
- Battery: 36V 10Ah (360 Wh)
- Weight: 37 lb (16.8 kg, over 40lbs with fenders, kickstand, etc)
- Frame: 6061 aluminum alloy
- Tires: CST Puncture-proof 700*45C-size Tires
- Brakes: Tektro dual-piston hydraulic disc brakes
- Gearing: Shimano 8-Speed Claris
- Extras: Compact LED display, 4 pedal assist levels, slim fender set, kickstand, internally routed cables, LED lighting, removable battery, Tenways app integration, torque sensor, four color options
No Throttle?
Note that as a class 1 e-bike, neither belt/chain version has a throttle. While this may be controversial to some, it not only simplifies the bike, it makes it a Class 1, which will be legal in the most places. I tend to think of no throttle as a “foot throttle” and for the commuter application, this will serve well. Would I appreciate a throttle on a hill start? Perhaps.
The idea of this bike is to just enhance your pedal bike experience. You are going to get some exercise on this bike versus a bike that is a glorified low-power moped that runs on throttle with vestigial pedals.
More importantly, the torque sensor here is phenomenal; I mean, it is probably the best torque sensor I’ve ridden connected to a rear hub motor. The acceleration is smooth and strangely powerful for the 350W/45nm motor. Significant hills are a breeze, and this is one of the few bikes where I forget that I’m using an e-bike sometimes (until I look down and I’m going 20mph with little effort). Hills are also where the gearing really helps.
The tires are also the perfect size for a commuter with puncture resistance and treads that will do OK in rain and snow.
The bike itself is also very stealthy in terms of showing that it is a powered e-bike. The small 36V, 10Ah battery is integrated magnificently into the narrow downtube of the bike. All of the cables are integrated into the bike frame for a super-clean look. The rear hub motor is small but packs a punch. Many people won’t even recognize this as an e-bike. While I’m proud to be riding an e-bike around, perhaps some people would like to keep that on the down-low.
Brakes are great with hydraulic Tektros clasping against 160mm rotors in front and back. It is such a light bike that stopping can be jarring.
Assembly was super easy and took about 30 minutes with the included tool set. The battery came about 40% charged but was ready to go within a few hours with the 3A charger. Shoutout to Tenways for using a water-resistant standardized barrel charger adapter and not some proprietary adapter so that I can use one from another bike when I inevitably lose it.
Electrek’s take
The Tenways CGO600 is a fantastic light, clean, stiff and smooth e-bike that I have 0 reservations about recommending. While the battery and motor are small, they power the light bike admirably and for around 50 miles (your mileage will vary).
Currently there is a $200 off promotion code “HAPPY2025TW” at checkout bringing the CGO600Pro down to $1399 which is an amazing price for this bike:
FTC: We use income earning auto affiliate links. More.
Earlier this month, California enacted new regulations for electric bikes that resulted in stricter speed limits on e-bikes with throttles. At the time, it was unclear how electric bike makers would respond to the new regulations, but we’re now starting to see at least one manufacturer pushing to bring its existing e-bikes owned by California residents into compliance.
The new laws remove ambiguity in the Class 2/Class 3 e-bike categorization. Formerly, many e-bikes were designed to operate in either category depending on the owner’s desires. Such bikes could operate as Class 2 e-bikes reaching max speeds of 20 mph (32 km/h) with a throttle, or as Class 3 e-bikes reaching higher speeds of 28 mph (45 km/h) on pedal assist-only.
In fact, the overwhelming majority of Class 3 e-bikes sold in the US used this design, offering hybrid compliance for functionality as both Class 2 and Class 3 e-bikes.
After California’s new laws removed any ambiguity between the classes, it is now clear that e-bikes in the state will need to function either only as Class 2 e-bikes (throttle up to 20 mph) OR Class 3 e-bikes (up to 28 mph but without any throttle).
It was unclear whether existing e-bikes already sold prior to the law’s enactment would receive an exemption, but bicycle manufacturer Specialized doesn’t seem to be taking any chances.
Specialized is the maker of the Globe line of cargo e-bikes, and recently sent out an update to owners that would help them bring their e-bikes into compliance with California’s new stricter regulations.
Like so many other electric bikes on the market, the Globe e-bikes came with throttles allowing 20 mph speeds without pedaling, but could also reach up to 28 mph on pedal assist.
A new firmware update promoted by the company will essentially restrict its e-bikes to purely Class 2 operation, removing the motor’s ability to assist the bike in going any faster, even when pedaling without throttle operation.
The update will also come with a Class 2 compliance sticker that replaces the previous Class 3 sticker.
To install the voluntary update, Globe owners are encouraged to visit their local Specialized dealer.
A copy of the update letter was shared on Reddit and can be seen below.
Electrek’s Take
This is an interesting approach, because it indicates an understanding by Specialized that it is responsible for any of its e-bikes already on the road that have now been made non-compliant by the new law.
There are basically two main options to “fix” these previously hybrid Class 2/3 e-bikes and bring them into compliance. One is to unplug and remove the throttle, turning the bike into a true Class 3 e-bike under CA regulations. The other is to remove the ability for the motor to assist at speeds over 20 mph, turning it into a Class 2 e-bike. That latter is what Specialized appears to have decided to go with, and it makes sense to me. If you asked most owners of these e-bikes about which they’d give up if they had to, they’d probably tell you “take my 21-28 mph speed but leave me my throttle”. Throttles are simply such a major part of e-bikes in North America that most riders would give up the whole bike if they were forced to give up the throttle.
The bigger question here is how many Globe riders will actually install this update. Since you need to not only opt-in to it, but also physically visit a dealer to do it, I have to imagine that the vast majority of riders will simply ignore the update altogether, keeping their faster non-compliant speed on an e-bike with a throttle. I’m not saying that’s the right thing to do, but I am saying it’s what will happen in the real world.
And if we are being honest, these Globes aren’t even the e-bikes that are at the heart of the issue. Most CA residents are more concerned with teenagers ripping down sidewalks on moped-style e-bikes, not the local moms and dads riding to Trader Joe’s on their sensible, upscale cargo e-bikes that just happen to have hybrid Class 2/3 performance.
FTC: We use income earning auto affiliate links. More.
Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports9 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway