The European Union has consistently been at the forefront of global efforts to combat climate change, and its ambitious emissions regulations have had a profound and transformative impact on the automotive industry. For European car manufacturers, these regulations are not merely guidelines; they are powerful drivers of innovation, strategic shifts, and, at times, significant challenges. From the early Euro standards to the stringent CO2 targets, EU policies have fundamentally reshaped how cars are designed, produced, and marketed across the continent.
The Genesis of Change: Euro Standards and CO2 Targets
The journey began decades ago with the introduction of “Euro” emissions standards, progressively limiting pollutants like nitrogen oxides (NOx) and particulate matter (PM) from vehicle exhausts. These standards pushed manufacturers to develop more efficient internal combustion engines (ICE) and advanced exhaust after-treatment systems.
However, the most significant shift came with the implementation of fleet-wide CO2 emission targets. Starting with the 2020/2021 …
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