Brussels has just resigned itself to not passing the CAFE standard package, which was expected to cost the automotive industry €15 billion. Since last year, a new regulation has been discussed in the European Union to lower the average limit that car manufacturers must not exceed in their sales mix, under penalty of a fine, to 81 grams. This restriction aims to push brands to turn to the sale of 100% electric cars, even if it means lowering their delivery targets.
Parliamentarians in Brussels voted by a majority (458 votes in favor and 101 votes against, with 14 abstentions) to postpone the CAFE regulation to 2027. This decision was taken while the European Parliament launched an emergency procedure to prioritize this vote. As journalist and columnist Michel Holtz of Caradisiac points out, this procedure has only been activated twice, during the 2020 health crisis and during the war in Ukraine. This shows the extent to which Brussels was under pressure from manufacturers and governments.
At the beginning of the year, European Commission President Ursula von der Leyen had nevertheless shown her inclination towards a little more "pragmatism," while the fines resulting from the CAFE regulation risked weakening an already very fragile industry. The new standards also risked indirectly benefiting brands like Tesla, which only sells electric cars and has seen its profits increase thanks to the sale of carbon credits.
Among the voices raised against the CAFE standards were those of Luca de Meo, the boss of Renault, and John Elkann, head of Stellantis. With this new vote, business leaders are not so much winning a victory as receiving a reprieve. By 2027, new electric cars priced under €25,000 should allow manufacturers to comply with the CAFE regulations, with their new average limit of 81 grams of CO2 emissions per fleet.
New affordable electric models by 2027
At Renault, the future electric Twingo is particularly on the cards. The city car is scheduled for summer 2026 and is aimed at €20,000 with three versions available (from €19,900 to €23,900). It will reportedly feature an 82 hp engine for a fuel consumption of just 10 kWh/100 km thanks to a technical design from the Chinese company Launch Design. Meanwhile, an electric Nissan Micra is also planned for the same year, based on the same technical basis.
Stellantis hasn't announced many new affordable electric models for the next two years. We should especially highlight the ambitions of the Volkswagen group, which intends to launch its ID.1 and ID.2, a Cupra Raval, and a Skoda Epiq.
0 Comments