ACEA: Euro 7 ruling to cost up to 2 600 euros per car

The lobby organisation for car manufacturers ACEA is flashing the lights again on the proposed Euro 7 rules, which are considered unnecessary and a waste of money by many car brands. A new survey has calculated that the price increase could be four to seven times higher than initially accounted for.

“The effects on the environment are extremely low, but the costs extremely high”, concluded ACEA Director General Sigrid De Vries. She points to a study by Frontier Economics, which concluded that the proposal would lead to a cost increase of 2 600 euros per diesel car or van, and even 12 000 euros for a diesel truck. For petrol vehicles, the surmounted costs were 1 800 euros.

Much more than 300 euros

This aligns more or less with earlier statements from captains of industry like Volkswagen Group CEO Oliver Blume. He already stated that the increase necessary to meet the stringent emission targets would lead up to several thousands of euros, not the 300 euros penalty put forward by the European civil servants at the time they laid down the proposal.

The now detailed cost calculation comprises direct manufacturing costs. ACEA points out that the final purchase cost will be even higher if the ruling is adopted in an unchanged format.

Put money into EVs

Car makers have already warned that the new set of rules would have the greatest impact on city cars, where price increases are much more difficult to justify. As electrification is out of reach for this client pool, their prolonged use of their old car would negatively impact the carbon footprint of Europe’s car fleet. The car makers are reasoning that the investment necessary for Euro 7 would be much better averted to the money-guzzling research and development of electric cars. Stellantis CEO Carlos Tavares has repeatedly put forward this point of view.

Still, Euro 7 is far from an exponential tightening of the norms next to the current Euro 6 ruling, which is already the strictest in the world. Diesel engines, which have become a marginal phenomenon in the city car class, must meet the same 60 mg/km limit as current petrol cars under Euro 6. A new criterium, though, is the adoption of emissions of abrasives from tyres and brakes, which also affect battery-powered vehicles.

Growing opposition

Opposition towards the Euro 7 ruling, planned for introduction on the 1^st of July 2025, is growing significantly among member states, fueled by the successful blocking of Germany on the theme of electric fuels regarding the 2035 ban (on CO2 emission – not included in the Euro norms which strictly deals with toxic pollutants). It shouldn’t come as a surprise that Italy, home to the highly affected small cars, is this time leading a coalition against Euro 7.

Italy has already gained support from France, the Czech Republic, Bulgaria, Hungary, Poland, Romania and Slovakia. These eight member states sent out an open letter earlier this week calling out for other member states to join and vote against Euro 7. Notably, they don’t oppose the newly adopted emission standards for tyre and brake wear, but only the emission framework.