The increasingly evident desire of car manufacturers for electrification is not made just because this is a technology “of the future”. There are other conditions… After all, we are talking about companies, where the final objective is always, or at least almost always, profit.
So… Why the multimillion-dollar bet on electrification?
Well, there are several answers to this question.
But at the moment, in addition to being a long-term bet, the truth is that car brands are doing everything to overcome the strict rules on CO2! More specifically in Europawhere the dates and rules are one of the hardest to overcome, and in fact, get harder and harder with each passing year.
However, amidst all the confusion, it appears that the European Union is planning to take a step back on Euro 7 regulations.
Therefore, it seems that there is a relaxation in the rules, with the information suggesting that we are going to have a drastic reduction in the emission regulations defined so far.
What is the reason for this change? In a nutshell, the new emissions target puts too much pressure on the car industry. Which in turn increases production costs, and consequently diverts resources necessary for the development of 100% electric cars.
According to Stellantis CEO Carlos Tavares:
“From an industry point of view, we don’t need Euro 7 as it will take up resources that we should be spending on electrification”
For the record, know that the new Euro 7 regulations were already in effect for models sold between 2025/2026. However, it would be a rule increase that makes little sense in the grand scheme of things. The end of the combustion engine is scheduled for 2035, with some manufacturers planning to do away with it before that date. So… It makes little sense to raise the stakes further when the race to electrification is already so exciting.
In fact, it would only result in a slowing down of efforts by several key manufacturers in these new times.
However, what is your opinion? Share with us your point of view regarding the bet on electrification?