The German automakers have gotten want they wanted, and the EU has dropped plans to make average EU car emissions 95g/km of CO2 in 2020. A new plan has not been agreed to yet, but it will be formed in the coming weeks, according to EU ministers.

The German automakers have been fighting against the lower average CO2 emissions for months and were recently able to get the French auto industry to back its criticism of the plan. Their main objection is that the 95g/km of CO2 limit would cost jobs due to the lower sales of premium, large sedans. Eventually, the UK and Poland also supported Germany’s plan.

The Germans’ alternative is that by 2020 80% of European cars should produce 95g/km of CO2 and by 2024 all cars would have to reach that point. That gives BMWBMWGermany, 1918 > present87 models
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, Mercedes-BenzMercedes-BenzGermany, 1924 > present197 models
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and Volkswagen Group’sVolkswagenGermany, 1938 > present98 models
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luxury brands a decade to develop cleaner luxury sedans, while still forcing most of their cars to have lower emissions.

"It was made clear from all sides that we want an ambitious climate-protection goal and, at the same time, it was made clear that in some places more flexibility must be sought and can be found," said German Environment Minister Peter Altmaier.

Critics to the German plan site a study from UK firm Cambridge Econometrics that the EU would have saved €70 billion in oil per year under the original plan. Germany alone would have saved €9 billion a year.

"It's an unacceptable price, which will be paid by every European driver in higher fuel bills, by the planet that will warm quicker and potentially by Europe's auto sector that will be less competitive," said Greg Archer, a member of the EU environmental lobbying group Transport & Environment.

The blocking of the 2020 emissions rule may have broader implications as well. European Parliament elections are next year, and if the new plan is not ratified in time, it could be delayed until 2015.

Source: Automotive News Europe