The European Union plans to create a new category for compact electric vehicles with more relaxed technical requirements than standard-size EVs as the region seeks to lower manufacturing costs and compete with Chinese producers.
The European Commission, the bloc’s executive arm, plans to release a draft proposal soon, with the new “E car” category to be launched in the next few years following approval by key institutions. The proposal is expected to define the class by vehicle size, weight and motor displacement. EU member states will also discuss a mechanism for vehicle tax exemptions for the new class.
The EU has until now required EVs to be equipped with systems to detect driver drowsiness, maintain lane positioning and signal sudden stops. These requirements, designed for long-distance travel, have contributed to higher costs.
“The overall vehicle set-up … will be on a lower level which will bring down cost as the vehicle is less complex,” said Beatrix Keim at Germany’s Center Automotive Research. Sale prices of such cars are predicted to fall by 10% to 20% to land in the range of 15,000 to 20,000 euros ($17,500 to $23,200).
The EU imposes import duties of up to 45.3% on EVs made in China. The new classification will allow European autos to better compete on price. This will be a boon for European developers of compact EVs, including Germany’s Volkswagen, European multinational Stellantis and France’s Renault.
…
So we complain about China subsidizing EVs and now we are subsidize EVs…
Nice to know my tax payer money goes to companies that fought every second to not invest in R&D the last 10 years because they rather lobbied against EVs…
It’s an unpopular opinion on Lemmy but I am all for tariffs on Chinese EVs that are subsidized by the Chinese government with the sole purpose of crushing our economy BUT I agree this is not exactly where we should put that tax payer money. It should go into electric public transit. No doubt. European car companies need to get their shit together on their own.
Oof, it really sucks to think you have a point when you’re really just defending the egregious profits of American car companies.
If we really cared about competing, we could raise taxes on the ruling class and use that money to subsidize EV manufacturing. This could be coupled with government mandates that prevent car companies from charging high prices “just because they can.”
Unfortunately, your opinion is not unpopular because most people who think they’re right are really looking out for people richer than them.
There’s nothing about european subsidies for EVs in the article though? At least not monetary subsidies, and chinese manufacturers could also make cars for this new category, though tariffs will hit harder for cheaper cars.
Tax incentives are basically subsidies… The difference is splitting hairs.
Look at how China subsidizes and how the EU does. These are two different things.
Not really.
It’s all socialism in the end. Useful idiots just like to pretend it’s not and it’s only “ok when we do it.”