Euro 7/VII A New Challenge for IC Industries


cars, vans, lorries and buses”…. “The European Green Deal1 is a new growth strategy that will foster the transition to a climate-neutral, resource-efficient and competitive economy and the move towards zero-pollution in Europe. To accelerate the shift to sustainable and smart mobility,


A transport should


become significantly less polluting, especially in cities. The EU automotive industry must lead the global transition to zero-emission vehicles, rather than follow the lead of others. This will allow the industry to take advantage of the business opportunities offered. Significant efforts have been made over the last 4 years to reduce emissions of air pollutants, in particular in the wake of the Dieselgate. In parallel, new power trains – battery electric and hydrogen – are emerging as an alternative to the combustion engine. However, although the roll out of such technologies is accelerating, it is still slow. In the meantime, more needs to be done to “clean” the combustion engine to ensure protection of human health in urban areas and to prevent the internal market from fragmenting due to individual national initiatives (e.g. diesel bans, petrol bans). The European Green Deal roadmap therefore includes a proposal for more stringent air pollutant emissions standards for combustion-engine vehicles by 2021. Given the overall ambition of the European Green Deal, any possible policy action on stricter air pollutant emission limits must also consider the EU’s objective of achieving climate neutrality by 2050.”


Under this contextual scenario,


the initiative Euro 7/VII is bound to be adopted at the last quarter of 2021 meaning that from 2025, the amount of combustion engines manufactured in Europe to be incorporated on new cars, vans, lorries and buses shall be reduced in favor of other technical solutions like electrical engines. This is anticipated as per the emissions


®


ccording to the EU initiative “Development of post-Euro 6/VI emission standards for


restrictions imposed by the Euro 7 initiative leading to a non cost effective solutions in the combustion field whilst at the same time electrical solutions become


more cost effective with


battery and electrical engines reducing cost as per the scale economy effect and technology maturity.


Whislt it is clearly understood and endorsed by the industry the commitment to carbon neutrality by 2050 and the support to the objectives of improving air quality and ensuring the protection of human health, the effects of the proposed initiative might represent severe consequences for the automotive industry and the associated supplier base. The European automotive industry is claiming an adequate and proportional transition to this new scenario of emissions, taking into consideration many factors such as the diverse requirements of the personal and commercial vehicle segments and of the use cases of customers and operators. Investment Casting companies


active in the field of automotive represents approximately the 15 % of the European IC Market (508 M€ in figures of 2019) having gone through an attrition in 2020, close to 30 % due to the Covid-19 impact with regressions to figures of 2010.


This new perspective in the field of the markets served constitutes facing new additional challenges beyond the uncertainty of the recovery. Quoting the words of a letter


sent by the most important European Automotive


Associations entitled


“Industry letter on the process the European Commission is following in the AGVES on Euro 7” …….. “The discussion on Euro 7 must therefore not be used to force a specific design requirement. We interpret the direction of AGVES on 27 October as an intention to severely limit, or even cancel, the future role of the internal combustion engine in the European market.” So as the reader can realize this is a serious issue colliding with a lot of different interests and where rationalization and a suitable transition period is required.


The public


consultation period of the initiative is already finalized and the feedback received is under study and assessment. The calendar calls for the initiative to be adopted by the Commission in the fourth quarter of 2021. The EICF is in contact with CAEF (Umbrella organisation of the European foundry industry) to support whatever actions might be required in defense of the European Investment Casting industry.


March 2021 ❘ 21


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