Passing a law that mandates 100% electric vehicles in ten years is the easy part, but going too fast could create competitive risks for auto manufacturers, the president of the International Organisation of Motor Vehicle Manufacturers (OICA) John Bozzella said on Thursday in remarks at the Sustainable and Accessible Mobility Forum in Bucharest.
"When I talk to government leaders, what I hear is that the future is electric. Secondly, shifting to electric personal mobility requires nothing short of a complete transformation of the global automotive industrial base, and also a re-imagination of the auto markets around the world. (...) Automakers are investing massive amounts of capital in electrification generated by returns from internal combustion engine sales. This can't go on forever. So I tell policymakers that in order to be successful we need to address the necessary conditions to shift the market. I don't worry at all about the automakers' ability to produce vehicles, but I do worry about whether there's too big a gap between government requirements and customer expectations. In other words, we need a balanced policy approach. I understand that policy makers must balance multiple societal goals. They have to consider carbon reduction, they also have to consider jobs, trade, competitiveness and economic and national security. Sometimes these goals and policies don't line up, sometimes they are in conflict. Passing a law that requires 100% electric vehicles in ten years is the easy part, but going too fast could create competitive risks for automakers," Bozzella emphasized.
According to him, decarbonization requires a governmental and industrial partnership, as well as commitments from the entire road transport ecosystem.
"No single government policy or industry investment, in isolation, will achieve carbon neutrality. (...) Globally, there are 1.47 billion light-duty vehicles on the road. In 2023, about 3%, or 40 million vehicles will be electrified, up from 2% or 26 million in 2022. To give a U.S. perspective, there are 286 million light vehicles on the U.S. roads, and in 2023 - 1.5%, or 4.3 million of those were electric vehicles. (...) I was at the Paris Motor Show and saw amazing products there, but for this transition to electrification to be truly successful and to move as quickly as we all want it to, we need a deeper, broader and more strategic partnership between automakers, other sectors of the economy, and the government to address near-term challenges. (...) Unfortunately, what we see from governments in some places and in some cases are policies that are unevenly applied," he continued.
"The ambitious e-vehicles are good, but let's not assume or hope that everything will go perfectly. It won't, it never does. The future is electric and this will happen if we work together on a shared vision of success. (...) Auto making is one of the world's most consequential and indispensable industries. It is an economic engine and a driver of opportunity and social freedom," said the head of OICA.
He also noted that electrification is shaping the future in many automotive markets, but is not the only answer to environmental problems.
"OICA gathers once a year to compare notes and discuss challenges and opportunities facing our industry around the world. And, as the [Romanian] prime minister said, we also gather against a backdrop of considerable uncertainty, industry uncertainty, geopolitical uncertainty. We've got much to talk about these days, don't we? OICA's mission, in short, is to improve global road safety and environmental standards so all countries and all people have access to the safest, cleanest and most advanced transportation possible. I want to mention just briefly that we work very extensively on technological and technical and regulatory standards," Bozella said, and went on: "Globally, the auto industry is investing hundreds of billions of dollars in clean energy technologies. (...) Electrification is shaping the future in many auto markets, but let's be clear: it's not the only answer. We don't believe that every country must or even should adopt the very same decarbonisation strategy, but instead a technologically-neutral approach is needed, with flexibilities for countries to adopt political policies and technologies suited to their geographic, socio-economic, cultural and geopolitical realities," said John Bozzella.
Romania's Association of Automobile Manufacturers and Importers organized on Thursday a new edition of the Sustainable and Accessible Mobility Forum, with leaders from the automotive industry in 35 countries, political leaders and decision-makers in attendance.