Electric vehicle manufacturing is rapidly developing worldwide at the expense of internal combustion engine vehicles, and related laws are also supporting this shift. When will these car factories finally close?

By the third decade of the second millennium, electric vehicles began competing with fuel-powered cars on roads around the world due to relatively low costs, support from environmental and climate advocates, and a shift in the stance of government authorities.

Against this background, the Al Jazeera documentary channel's film "The Shock of Power" highlights Europe's initiative to officially stop using fuel-powered cars by 2035.

Fabricating Carbon Emission Levels

For over a century, cars have been the most popular personal transportation option in Europe. To meet this demand, a strong automotive industry emerged in Europe, including Renault, Peugeot, and Citroen in France, Fiat in Italy, Mercedes, BMW, and Volkswagen in Germany, and Seat in Spain.

Fuel-powered cars have dominated the personal transportation sector for over a century

The sophistication of fuel engine manufacturing technology brought higher sales for these companies, which claimed that they had transformed fuel engines into clean energy engines during the first decade of the second millennium. Due to global warming, the impact of fuel engines on the climate was questioned by environmental experts and their supporters at the time.

In 2015, this industrial empire faced a crisis when the United States accused the world's largest car seller, Volkswagen, of manipulating its engine's pollution levels.

Volkswagen's CEO was then summoned to testify before the U.S. Congress, and in his testimony, he said, "I sincerely and deeply apologize on behalf of the company for Volkswagen's use of software designed to circumvent emission measurement systems."

"Dieselgate" scandal: U.S. Congress hearing

Economist Bernard Julian stated that this fraud revealed two things:

  • First: manufacturers lacked credibility.
  • Second: it was supposedly impossible to achieve clean fuel engines.

The myth of clean fuel came crashing down, not only Volkswagen but all European factories faced the same fate. BMW, Opel, and Mercedes were convicted for these actions, while Fiat, Renault, Peugeot, and Citroen were also charged.

Harsh Legislation

The "Dieselgate" scandal marked a turning point in Brussels. Members of the European Parliament formed an investigation committee, including French MP Karima Delli, who stated, "The work of the investigation committee will last a full year, including a series of unprecedented hearings, with EU commissioners and car manufacturers participating."

She spoke about premeditation, saying, "Everyone knew these discrepancies, but no one took any action. Since 2009, car manufacturers have been exceeding these limits. This is due to political priorities and lobbying groups, which led the committee to exert no pressure on car manufacturers after the 2008 crisis until 2015."

After the "Dieselgate" scandal, the investigation committee condemned the dominance of car companies over European institutions. To restore their reputation, these institutions required car manufacturers to reduce carbon emissions from 130 grams per kilometer in 2015 to 60 grams per kilometer by 2030, which is impossible with current fuel technology.

French car companies turned to their long-time allies - the government and the Elysee Palace - to alleviate the impact of European requirements. Former Renault CEO Patrick Pélata said, "President Macron held a meeting with executives from the European automotive industry before the 2018 Paris Motor Show, including Carlos Ghosn, CEO of the Renault-Nissan Alliance, and Carlos Tavares, CEO of PSA Group."

They tried to persuade Macron to mediate with Brussels, but he responded, "I won't protect your fraud, and Europe won't accept it. Instead, you must correct your course."

For German car manufacturers, they received a moral lesson from German Chancellor Angela Merkel, who stated: The automotive industry must regain lost credibility because it is in their best interest, their employees, and the entire German economy.

Conflict Between Environmental Experts and Manufacturers

After the "Dieselgate" incident, car companies lost influence in standard setting and regulation, and a complete split emerged between European legislators and industry authorities, with environmental issues becoming their top concern.

In 2019, the European Commission took this approach, announcing the launch of a historic "Green Deal." According to data from the European Union, the transport sector contributed about 15% of greenhouse gas emissions, according to the Intergovernmental Panel on Climate Change (IPCC) 2019 data, and confirmed that full electrification of the transport sector would reduce these emissions.

European business leaders reject car manufacturers

The French Automobile Federation (FAF) disputed the study results. President of Plateforme Automobile, Luc Chatelet, said, "We see continuous improvements in engine performance, and we will provide solutions using hydrogen to develop fuel. Electricity may seem clean, but our research shows that the pollution caused by electricity use, battery manufacturing, and recycling is more harmful to the environment."

Manufacturers claimed that the carbon emissions of fuel cars are equivalent to those of electric cars powered by coal. However, the Intergovernmental Panel on Climate Change (IPCC) stated that using electric cars in a single European country that uses coal for power generation - Poland - would only increase carbon emissions by 3%, while in Germany, carbon emissions would decrease by 40%, and in France, by 69%.

The European Commission made a historic decision to support electric vehicles

In July 2021, the European Commission announced that it would adopt scientists' recommendations to move towards 100% electric vehicles and voted to gradually phase out fuel-powered cars by 2035. This will be difficult politically and legislatively, as well as in convincing European citizens, but ultimately it will succeed.

Green Victory: The European Commission Supports Electrification

In January 2022, Carlos Tavares launched a campaign against the transition to pure electric vehicles, condemning Brussels' stance on the automotive industry, while trying to unify the political opposition front. Carlos is the head of Stellantis Group, which includes 14 automotive brands and operates in 30 countries.

While Stellantis Group struggled, Volkswagen chose a different path, choosing to completely transform its automotive technology after the "Dieselgate" scandal, pioneering the abandonment of fuel engines and terminating its alliance contracts with European partners.

In June 2022, the text of abandoning fuel engines was submitted to the European Parliament. Green parties and environmentalists tried to secure support from 40 undecided votes, people feared the practices and pressures behind the scenes.

Voting results: A victory for the environment and climate

There have been dramatic changes in the past few hours. The bill received strong support from the Stellantis Group, which previously opposed the transition. This influenced the voting results, and finally, the committee's proposal was approved. This day was a victory for environmental protection and a leap for the European automotive industry into the unknown.

"Naive decisions lead to stagnation"

In September 2022, the world's largest automotive exhibition - the Paris Motor Show - opened under the watch of French President Emmanuel Macron. Macron said, "France will continue to maintain its leadership in the global automotive industry, and we will provide unlimited support for the automotive industry, innovation, environmental protection, and national sovereignty."

His optimistic attitude was opposed by Carlos Tavares. Although Tavares supported the transition law, he strongly opposed the way the bill was voted on. He said, "These decisions are naive, rigid, and lack objectivity. They did not focus on energy and charging network issues; the simplest solution is to pressure car manufacturers."

President Macron attends the Paris International Motor Show

There was confusion and doubt in the exhibition hall regarding Tavares' remarks, with some people thinking he might be too hasty in supporting the transition, which could come faster than expected. Also, Stellantis Group has not many brands transitioning to electric vehicles, while the European electric vehicle market is expanding rapidly, with electric vehicles accounting for 14% of car sales.

These vehicles have been purchased by corporate fleets and car rental companies, who will replace these already purchased electric vehicles within four years, making electric vehicles affordable for low-income people. Corporate fleets and rental companies serve both the environment and the general public.

Grace and luxury are the defining features of future cars

As electric vehicle prices continue to fall, Europe hopes to replace 250 million fuel-powered cars by 2050. This is a promising market attracting new competitors to capture Europe's large market share.

Seeking Luxury, Economy, and Environmental Protection

Exhibitors at the Paris Motor Show compete to showcase more beautiful and luxurious models, focusing on large SUVs and luxury sedans that attract the elite. Newer models include brands that are less known in the European market, such as Vietnamese and Chinese brands, which offer pure electric vehicles.

BYD has become the world's second-largest automaker after Tesla, with sales surpassing 1 million units in 2022. The company has a significant market share in Norway and hopes to expand to other European markets. In 2009, the Renault team visited BYD during a global tour, at the time BYD was only a small battery manufacturer. Now, BYD has become the fourth-largest automaker in the world, following Volkswagen, Toyota, and Tesla.

BYD: From a small battery manufacturer to the second-largest electric vehicle manufacturer

Comparing two electric models operating in France - the French Renault Mégane and the British classic MG, which was acquired by a Chinese company in 2006 - we find that the全套 Chinese electric vehicle is priced at 35,000 euros, with a standard version at 30,000 euros, while the standard version of the Mégane is priced at 45,000 euros, a difference of 10,000 to 15,000 euros.

So how did China quickly conquer the European market?

China found itself lagging behind Western giants in traditional industries, so it decided to compete using new technologies like electric vehicles and quickly took a place among the giants. China also has a huge domestic market that can quickly recoup R&D costs.

Suppliers and Subcontractors Are the Biggest Losers

Renault is striving to make its cars smarter and more human-friendly. It has massive cloud data and AI applications that can predict user needs and meet them faster. For this, Renault has signed a cooperation agreement with Google. The company's CEO promised to soon launch the legendary Renault 5 electric version to reshape Renault's relationship with the public.

The electric version of the legendary Renault 5

Renault hopes to produce 1 million electric motors in its old fuel engine factories by 2030 and train 3,500 employees for this new work. The technology for electric motors is much simpler than that of fuel engines, and their components are three times smaller, which benefits the manufacturing process.

However, French unions are concerned that old car parts suppliers and subcontractors will be the first victims of this technology, as many parts used in fuel-powered cars are no longer needed for electric vehicles.

"An example is an aluminum smelting plant in southern France where workers will lose their jobs," said Jean-Philippe, a representative of the CGT union. "But they can choose another option: transforming this factory into a production site for aluminum parts for electric vehicles, which have many parts. This way, they can retain workers instead of firing them."

Europe's Old Continent in Difficulty

Another factor causing the decline in the automotive industry is the relocation of many factories to other countries, including Turkey, Morocco, and Eastern Europe. However, there is still hope for recovery. Fuel engine factories have been converted into battery factories, which will produce 2.5 million batteries annually. Batteries account for one-third of the cost of electric vehicles.

China is the world's largest battery producer, and if Europe relies too much on China, it will lose added value. Therefore, Europe has planned to establish 50 battery factories in Europe. The European Commission has allocated over 6.5 billion euros to support these projects, hoping that Europe will become the second-largest battery producer in the world after China.

China is the world's largest battery producer

California has followed the EU's example, planning to achieve net-zero carbon emissions by 2035 and has started producing small trucks that rely entirely on electricity rather than fuel. Other U.S. states have also followed suit.

Former U.S. President Joe Biden signed the Inflation Reduction Act, which provides funding to support the localization of the battery and electric vehicle industries to help the U.S. reclaim its industrial leadership lost to China. The U.S. government will invest over $135 billion to support the electric vehicle industry.

Saying Goodbye to Gasoline-Powered Cars

Large SUVs still face a problem: they require larger and heavier batteries, consume more electricity, and have a larger carbon footprint. Experts urge a change in consumption patterns alongside the power revolution and promote smaller and lighter cars. This goes against the wishes of car manufacturers, as larger vehicles have higher profit margins.

Designers are eager to design cars that are 300 kilograms lighter, limit battery size, aerodynamic design, and economic flow, while giving up many luxury add-ons, and develop a culture of public transportation, car sharing, and cycling usage.

Source: Al Jazeera

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