Europe considers reviving small, cheap gasoline cars
European carmakers want the EU to allow the return of small, cheap petrol cars to save the market and jobs in the manufacturing industry.
The trend of wanting to return to cheap gasoline cars
The small, low-cost gasoline cars that were once popular in Europe have all but disappeared in recent years due to the trend toward electrification and increasingly stringent emissions regulations. However, European carmakers are calling on the European Union (EU) to allow them to restart the segment.
A positive sign emerged when European Commission President Ursula von der Leyen in her annual speech mentioned the 'Small Affordable Cars' initiative aimed at cooperating with industry to develop smaller, more affordable cars for consumers.
The EU is set to phase out gasoline and diesel cars by 2035, which many companies fear will result in a dramatic drop in sales, profits and hundreds of thousands of manufacturing jobs. Another scenario that worries them is that the European market could be flooded with cheap cars from China, posing direct competition.
Car companies put pressure on EU
The European Automobile Manufacturers Association (ACEA) will work with lawmakers to come up with a proposal to allow the production and sale of low-cost gasoline cars. Jean-Philippe Imparato, Stellantis’s European director, said this was not just his company’s voice but that of many other groups that share the same concerns.
The revival of small, cheap gasoline cars could be a stopgap measure to help the European auto industry weather the difficult times ahead of its full electrification drive. However, the initiative is sure to be controversial as it pits economic interests against environmental goals.
