Automotive News Europe — 2023-03-14
Automotive Industry
Volvo Cars CEO Jim Rowan criticized Germany, Italy and other European countries that are seeking to weaken the EU's plan to ban the sale of new vehicles powered by fossil fuels.
The European Parliament "confirmed this agreement on 14 February. Member States were supposed to do the same in early March," Rowan posted Tuesday on his personal LinkedIn page. "However, now a few of them are attempting to derail the process. This is a deeply worrying and disappointing development."
Germany has formed an alliance with Italy and some Eastern European countries opposing the phase-out of combustion engines by 2035 unless cars running on e-fuels are exempted from the ban.
Rowan said setting a zero-emission target for all new passenger cars and vans showed the EU's "global climate leadership at a critical time for our planet and humanity."
"Now is not the time for backtracking and blocking of science-based climate targets for our industry," he said in his post. "Now is not the time to put domestic political interests ahead of the health and welfare of our planet and EU citizens, and indeed of future generations. Now is the time for strong, decisive and progressive policy and leadership."
Volvo wants half of its global car sales to be full-electric models by 2025, an estimated 600,000 units, with the aim of being an electric-only brand by 2030. In addition, the Swedish automaker wants to achieve climate neutrality by 2040.
"We are aware of our obligation to help protect the planet," Rowan said. "We call on EU governments to show that they are too."
On Monday, Porsche CEO Oliver Blume said e-fuels should be exempted from the combustion engine ban. He said such an exemption would not slow down the automaker's electric ramp-up.
"If e-fuels are approved for the future, this will not lead to a change of Porsche's strategy," Blume, who is also CEO of VW Group, said during Porsche's annual press conference.
Porsche's strategy includes having electric cars such as the battery-powered Macan due next year account for more than 80% of the brand's sales by 2030.
This is not the first time Rowan has been at odds with the direction taken by European automaking giants such as VW Group.
Volvo's EX90 flagship electric SUV is key to the automaker boosting its sales of battery-electric models.
Rowan decided in 2022 to withdraw Volvo of Europe's main automotive lobbying group, ACEA, because he said the two sides have a "misalignment" on their sustainability strategies.
The ICE ban, the EU's main tool to speed up Europe's shift to electric vehicles, was put on hold earlier in 2023 March after last-minute opposition from Germany and Italy.
Czech Transport Minister Martin Kupka said on Monday that the European Commission may table a legally binding proposal on e-fuels in the coming weeks.
Reuters contributed to this report