German Truck Trailer Makers Challenge EU Regulation That Could Hurt Jobs and Emissions Goals
In a significant legal move, a coalition of eight prominent truck trailer manufacturers has lodged an appeal with the European Court of Justice challenging crucial aspects of Regulation (EU) 2024/1610. This regulation sets binding targets for CO₂ emissions reductions for trailers, despite the fact that trailers themselves do not directly emit CO₂. The manufacturers argue that these rules could jeopardize not only the industry’s health but also broader environmental goals. They acknowledge the necessity for climate action but caution that policies must be grounded in practical realities.
The regulation mandates an ambitious 10% reduction in CO₂ emissions from semi-trailers and 7.5% for other types, primarily based on simulations produced by the European Union's VECTO-Trailer tool, which calculates expected emissions savings. However, the trailer manufacturers are voicing their concerns that simply relying on simulation models fails to take into account the complexities of real-world transportation dynamics.
According to the group, such targets, if unmet, could lead to severe penalties starting in 2030, estimated at €4,250 per vehicle per gram of CO₂ emissions per tonne-kilometre. These financial burdens, they believe, could inflate trailer prices significantly—potentially by up to 40%—placing additional strain on manufacturers, especially smaller businesses that do not have the same financial cushions as their larger counterparts.
Gero Schulze Isfort, the spokesperson for the group, emphasized the contradiction of enforcing regulations that might encourage more trucks on the road without achieving actual emissions reductions. He stated that the need is not for faux solutions but rather for genuine improvements across the transportation sector. The regulation threatens not only the viability of production sites and fair competition but also the future of over 70,000 jobs within this sector.
Many of the companies involved in the appeal are medium-sized businesses. Unlike large corporations with vast resources, these manufacturers often lack the financial and technological means to absorb the challenges posed by such regulation, making them particularly vulnerable to economic downturns created by such prescriptive laws.
Critics of the regulation have also raised issues with the VECTO-Trailer tool itself, asserting that it rewards theoretical advancements in design—like reduced height or weight—without considering the practical impacts such changes would have on load capacities and overall transport efficiency. This has the potential to lead to increased numbers of empty runs, thereby escalating overall traffic and subsequent CO₂ emissions.
In light of these challenges, the manufacturers propose several measures to mitigate the economic risks posed by the regulation. These include:
The plaintiff companies, which include major players such as Fliegl Fahrzeugbau GmbH, Kögel Trailer GmbH, and Schmitz Cargobull AG, represent over 80% of annual registrations in Germany's tariff segments and a similar proportion across Europe. They remain committed to the goals of the Paris Climate Agreement but insist that effective climate protection must be feasible from an economic standpoint.
The German Association of the Automotive Industry (VDA) concurs with these concerns, stating that the excessively high CO₂ reduction targets pose existential risks to the majority of trailer manufacturers in Germany and throughout Europe. Industry leaders are warning that without amendments to these proposed regulations, the repercussions on jobs, the economy, and social conditions could be drastically adverse, affecting not only the trailer manufacturing sector but also the entire European transportation ecosystem.
The regulation mandates an ambitious 10% reduction in CO₂ emissions from semi-trailers and 7.5% for other types, primarily based on simulations produced by the European Union's VECTO-Trailer tool, which calculates expected emissions savings. However, the trailer manufacturers are voicing their concerns that simply relying on simulation models fails to take into account the complexities of real-world transportation dynamics.
According to the group, such targets, if unmet, could lead to severe penalties starting in 2030, estimated at €4,250 per vehicle per gram of CO₂ emissions per tonne-kilometre. These financial burdens, they believe, could inflate trailer prices significantly—potentially by up to 40%—placing additional strain on manufacturers, especially smaller businesses that do not have the same financial cushions as their larger counterparts.
Gero Schulze Isfort, the spokesperson for the group, emphasized the contradiction of enforcing regulations that might encourage more trucks on the road without achieving actual emissions reductions. He stated that the need is not for faux solutions but rather for genuine improvements across the transportation sector. The regulation threatens not only the viability of production sites and fair competition but also the future of over 70,000 jobs within this sector.
Many of the companies involved in the appeal are medium-sized businesses. Unlike large corporations with vast resources, these manufacturers often lack the financial and technological means to absorb the challenges posed by such regulation, making them particularly vulnerable to economic downturns created by such prescriptive laws.
Critics of the regulation have also raised issues with the VECTO-Trailer tool itself, asserting that it rewards theoretical advancements in design—like reduced height or weight—without considering the practical impacts such changes would have on load capacities and overall transport efficiency. This has the potential to lead to increased numbers of empty runs, thereby escalating overall traffic and subsequent CO₂ emissions.
In light of these challenges, the manufacturers propose several measures to mitigate the economic risks posed by the regulation. These include:
- - The abolishment of the VECTO-Trailer simulation tool,
- - A moratorium on penalties while the targets remain technically unfeasible,
- - The inclusion of zero-emission tractors in the CO₂ targets for trailers via a Zero Emission Vehicle Correction Factor.
The plaintiff companies, which include major players such as Fliegl Fahrzeugbau GmbH, Kögel Trailer GmbH, and Schmitz Cargobull AG, represent over 80% of annual registrations in Germany's tariff segments and a similar proportion across Europe. They remain committed to the goals of the Paris Climate Agreement but insist that effective climate protection must be feasible from an economic standpoint.
The German Association of the Automotive Industry (VDA) concurs with these concerns, stating that the excessively high CO₂ reduction targets pose existential risks to the majority of trailer manufacturers in Germany and throughout Europe. Industry leaders are warning that without amendments to these proposed regulations, the repercussions on jobs, the economy, and social conditions could be drastically adverse, affecting not only the trailer manufacturing sector but also the entire European transportation ecosystem.
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