The Standard of Discord
The Euro 7 regulations should come into force from July 2025. They require a reduction of 35% in NOx emissions and 13% in exhaust particles. It also calls for the addition of electrically heated e-catalysts and an on-board diagnostic system that will continuously monitor emissions.
Thus, according to several studies, the direct additional cost for many vehicles would be estimated at between 2,000 and 3,000 euros, or 10 times more than what the European Commission had envisaged. Consequently, several countries, including France and Italy, are up against the wind. Luca di Meo, CEO of Renault and AECA, castigated this Euro 7 standard which will force manufacturers to abandon small vehicles, which are not profitable enough, and therefore further complicate access to the automobile for a fringe not insignificant of the population.
A Pandora’s box for European industry?
Apart from the consequent cost of the Euro 7 standard, this, if it comes within such a short period of time, would force manufacturers to invest in it resources which would be diverted from the electrification in which they have rapidly embarked, with a view to the expiry of the ban on the sale of heat engines in Europe from 2035. The drastic level of the Euro 7 standard, its additional cost as well as its deadline for entry into force, could in the short term push many manufacturers Europeans to remove from their range small models that are not economically viable, with consequences for factories and employment in Europe, even as Chinese manufacturers are accelerating their offensive, with a very aggressive pricing policy and well-defined social and environmental conditions more lax at home. A Pandora’s box.
Electric yes, euro 7 no
Ferrari is adding its stone to the edifice of protest, through its CEO Benedetto Vigna who has been very clear about Ferrari’s strategy: “Ferrari is firmly committed to becoming a zero-carbon car manufacturer by the end of this decade. The prancing horse automaker becomes another automaker to tackle the new environmental standard – Euro 7. According to Vigna, his company has no plans to produce engines that meet the requirements for harmful emissions in Europe, but will instead focus on electrifying its model range. “Our goal is to produce unique electric Ferraris and we believe it is essential to focus on this. If we keep chasing after Euro 7 as planned, we will divert the attention of our company and our suppliers and we will not be able to use all the technologies that will allow us to create a unique Ferrari. We don’t need any detours from the road”.
In Italy, two key elements should be highlighted. First, the country’s delay in charging infrastructure, the national supply of electrified vehicles and quite simply the weakness of the electric market. A red lantern in Europe when it comes to car electrification, Italy saw electric vehicle sales fall 26.9% in 2022 and their market share reached just 3.7%, compared to an average of 12, 1% within the EU. A reason which is explained above all by the lesser government support and also a problem of purchasing power, a majority of Italians not being able to acquire an electric model (unless they turn to the Chinese!) unlike the Nordic countries where EV sales are exploding with a population with greater financial means. The European forced march would thus jeopardize a large part of the already weakened Italian automobile industry.
E-fuel to save thermal supercars?
For its part, Ferrari is one of those manufacturers whose reputation is based on their know-how in the most noble heat engines. Like Porsche, a pioneer in this field, Ferrari defends the path of e-fuel, which could finally be authorized after 2035 following an agreement concluded between the European Commission and Germany in March. But nothing is fixed yet, a new legislative process is beginning to classify these e-fuels as zero-emission fuels, and should not be completed before autumn 2024.
The political weight of these prestigious builders worked. Except that these fuels for the moment should only concern a minority of vehicles, mainly luxury vehicles, and that the price of this fuel will be very high. But since then, some generalist groups have started converting to this track, such as Stellantis and also Renault, which has joined forces with the Saudi oil company Aramco to develop synthetic fuels. Already behind on electrification, Ferrari is therefore betting on synthetic fuels, of which F1 will also serve as a showcase from 2026 with the entry into force of the new engine regulations for the championship. Since 2022, single-seaters have been running on fuel made up in part of e-fuel, and this proportion will rise to 100% by 2025. This will be the only way out so that the road-going Ferrari V12 does not fall into oblivion.