The European Union's Proposal to Ban Gas Powered Vehicles
In July 2021, the European Union announced a proposal that would ban the sale of new gas powered vehicles on the continent by 2035. This decision was part of an ambitious new effort by the European Union to address climate change, known as the 2030 Climate Target Plan.
The full EU proposal aimed to reduce CO2 emissions from cars by 55% compared to 2021 levels by 2030, and a hundred percent by 2035. To put this into perspective, let's do some math here, okay? Take 100% of gas cars that are sold now, subtract 55%. This leaves us with 45% left, then subtract 100% of that, which results in 0% of cars left. If approved, the new law would make it damn near impossible for auto manufacturers to sell gas or diesel cars in 27 countries.
This decision has been met with both enthusiasm and skepticism from various stakeholders. European environmentalists and politicians largely cheered this news, recognizing the importance of reducing greenhouse gas emissions. However, some automakers have spoken out against the proposal, citing concerns about job losses and the impact on their businesses.
Italian supercar manufacturers are particularly concerned about the ban on gas powered cars, as they would need to adapt quickly to meet the new regulations. The ban has significant implications for companies like Ferrari and Lamborghini, which rely heavily on the sale of gas powered vehicles.
The proposed regulations are part of a broader effort to reduce Europe's overall carbon footprint by 55% compared to 1990 levels. This ambitious target is part of the European Commission's plan, which aims to address climate change through various measures. The plan also includes initiatives such as planting 3 billion trees across Europe and increasing renewable energy production by 40% over the next nine years.
In addition to reducing greenhouse gas emissions, the EU has proposed several laws to increase the practicality and sales of electric vehicles. One law would require European countries to install public charging stations no more than 60 kilometers apart on major roads by 2025. The plan estimates that up to 120 billion euros will need to be spent on chargers across the EU by 2040.
The combustion engine ban is arguably the most impactful part of the proposal, with significant implications for enthusiasts and collectors of gas powered vehicles. On the other hand, car companies have provided direct or indirect jobs to over 13.8 million Europeans, which is a staggering number considering that more Europeans have ever bought Europe's best-selling album ever.
The impact of this ban will be felt far beyond the automotive industry, with significant implications for the environment and the economy. As the European Union continues to push for a low-carbon future, it remains to be seen how effectively this proposal will be implemented and what the consequences will be for companies like Ferrari and Lamborghini.
WEBVTTKind: captionsLanguage: en- In July of 2021,the European Union announced a proposalthat would ban the sale ofnew gas powered vehicleson the continent by 2035.The full EU proposal was this,cut CO2 emissions from cars55% versus 2021 levels by 2030,then a hundred percent by 2035.Let me do a little bit of math here, okay.Take 100% of gas cars thatare sold now, subtract 55%.Okay, that's 45% left,then subtract 100% of that.Okay, the math checks out.That's 0% of cars left.If approved, the new law would make itdamn near impossiblefor auto manufacturersto sell gas or dieselcars in 27 countries.While European environmentalistsand politicians largely cheered this news,blow back from some automakers was swift.And it was Italian supercar manufacturersin particular, who said (beep).On this episode of WheelHouse,what is Euro's ban on gas powered carsmean for companies likeFerrari and Lamborghini,for the supercar in general?And how far might the Italiangovernment go to stop it?Big thanks to ShipStationfor sponsoring today's video.It's the holidays, whichmeans it's time for eggnog,fire pits and throwing snowat your brother-in-law, Jeff,unless you're running an online store.Then, it's more about packing boxesand managing inventory ofdealing with frustrated customerswondering if their giftswill arrive in time.And no amount of snow, you throw at Jeff,will make that feel more festive.Maybe you should use ShipStation.It's a holiday miracle that'll helpwith the hassle of shippingout your holiday orders,leaving you more time to run your businessor enjoy your time off.We have friends who use ship stationand it's super easy to useand really does turn shippinginto the easiest partof running an online store.You can import yoursales from Amazon, eBay,Etsy or your own website.Plus you'll get special accessto discounting shipping ratesthat are usually reservedfor the largest companies.Sick dude.So give yourself the gift of less stressand go to shipstation.com/donutto get a 60 day free trial.That's right.That's enough to coverthe entire holiday rush.So you can just sit back andkeep throwing snow at Jeff.Come here. Come here, son.These proposed regulations are partof an ambitious new effortby the European Unionto address climate changecalled the 2030 Climate Target Plan.Developed by the European Commission,which is the EU government'sexecutive branch,its goal is to reduce Europe'soverall carbon footprintby 55% compared to 1990 levels.Other aspects of the plan include,planting 3 billion trees across Europeand increasing renewable energy productionby 40% over the next nine years.This is stuff thatfrankly needs to get done.Also included are several proposalsto increase the practicalityand sales of electric vehicles.One law would require European countriesto install public charging stationsno more than 60 kilometersapart on major roads by 2025.The plan also estimatesup to 120 billion euroswill need to be spent onchargers across the EU by 2040.But the combustion engine banis arguably the most impactful partor at least the most visible.In addition to the huge ramificationsfor enthusiasts and collectors,car companies providedirect or indirect jobsto 13.8 million Europeans.That's more Europeansthan have ever boughtEurope's best-selling album ever.Celine Dion's 10 times platinum,"Let's Talk About Love."So it's actually a little surprisingthat several automakers respondedto the band by saying, man whatever.My heart will go on.Yes, the overall response was a mixof positive and negative.The ban would actually beno big deal for Volkswagen,which had already announcedto stop selling gascars in Europe by 2035.Similarly Stellantis, thenewish multinational corporationthat owns Dodge and Jeep among others,also previously announced a30 billion Euro investmentin electrifying their offerings.And Ford's Europeandivision, has said thatit will feature an allelectric lineup by 2030.So see, not a huge deal for them.However, the European AutomobileManufacturers Associationwent to bat for combustion engines.The Industry Trade Organization,announced their opposition to the banby saying that outlyingany specific technology"is not a rational way forward."and that the climateplan should include gas,electric, hybrid andhydrogen powered vehiclesall playing a role.This resistance foreshadowed,the Italian government'seventual response.More than anything else,the Italian motor industryis defined by richtradition of sports cars.Ferrari Lamborghini, Maserati,Alfa Romeo, and Paganiall make a lot of carswith big engines that go.(car engine roaring)(seagull squealing)So unlike their counterparts in Germany,where the auto industry isdominated by the wide varietyof brands under Volkswagen'shuge corporate umbrella,Italy's car industry isunusually reliant on spirited,but inefficient gas guzzlers.Unfortunately, the proposed timelinefor the gas enginesundown is extra difficultto meet this kind of luxury car maker.There's almost no way around it.Powerful gas engines meanabove average pollution.Plus, because these kinds of carsare generally produced in such low volumesit makes much less financial sensefor these companies to recalibratetheir entire productionfacilities and assembly processes.Ferrari is probably the mostprominent of these brandsdue to its esteemhistory and the fact thatit's the only majorItalian car manufacturernot currently owned byglobal conglomerate.Ferrari has also been particularly slowto embrace electrification.The company recently announced plansfor an all electric vehicle by 2025,which surprised observerssince it actually moved uptheir previous timeline.By contrast, the fullyelectric Porsche Taycanwas announced in 2015 andhas been on road since 2019.More than 20,000 of them were deliveredto consumers last year.And this year it outsold the911 and the Tesla Model X.Meanwhile Lamborghini'sChief Technology Officer,Maurizio Reggiani recentlytold The Drive, and I quote,"For us, it's fundamental tocontinue to use a V12 engine."The company has committed tocutting it's CO2 emissionsby half by 2025, butappears primarily focusedon developing plug-in hybrids,which would also be illegalif the EU proposal is adopted.Interesting.With all that in mind, it makes sensethat Italy's government would be worriedabout the future financialhealth of sports car companies,particularly those that are embeddedinto the fabric of Italian culture.Still the same could probably be saidfor a lot of industries, right?I can't imagine that this climate planis very tied to the smokestackindustry, for example.But I haven't heard about any governmentslobbying the EU onbehalf of chimney sweeps.Yet that's exactly what Italydid for their car companies.This is where a guy namedRoberto Cingolani comes in.In February of 2021,Cingolani was appointedto be the minister ofecological transitionby Italy's new prime minister.This newly created cabinet positionis in charge of Italian energyand environmental matters.And in September, Cingolani made headlineswhen he announced that Italy was in talkswith the European Unionto shield supercar makers,Ferrari and Lamborghini in particular,from the gas engine phase-out.Cingolani's argument isthat Ferrari and Lamborghinicombined to sell around16,500 vehicles in 2020,a small fraction of the millionsof cars sold every year.Just the tiny fraction. Justthe tiniest of pie slices.That makes our collective CO2 outputmuch smaller than other kinds of vehicles,as well as a fraction ofwhat other big polluterslike the meat industry produce.(cow mooing)This is all true, butthere's another variablewhich was conveniently leftout of Italy's announcement.Roberto Cingolani, Italy'shead environmental honchoused to work for, drum roll please.(drums rolling)You know what?That's not big enough. Addsome tempo in there, SR.Maybe some wind chimes. Great.Epic, but whimsical.Roberto Cingolani usedto work for Ferrari.He was on their board of directors.If you think that soundslike a conflict of interest, I'm with you.But then again, my interestsconflict all the time,like I like pop tartsand toaster strudels.So what do I know?Cingolani actually had toresign on Ferrari's boardin order to take the jobas Minister of Ecological Transition.Prior to his stint at Ferrari,he was Chief Technology Officerfor an Italian weaponsmanufacturer called Leonardo.He sounds like a real tree hugger to me.Perhaps unsurprisingly Cingoloni,almost immediately found himselfin conflict with Italian climate activistswho have been concerned with his causeto slow the clean energy transition,particularly his support of natural gas.Probably didn't help whenhe gave a speech sayingand I quote, "Extremistideological environmentalist,"dot, dot, dot, "are worsefor the climate catastrophe."To be fair Cingolani, also reiteratedItaly's commitment to reducing emissions,even as it called forthe supercar exception.It's also unclear if Italy's requestwas an independent government decisionor result of lobbying by the companies.I wonder which?Either way it's clear that Cingolanisees climate change as a problemthat can be solved while also maintainingthe Italian tradition ofthick booty engine blocks.Like the reaction tothe ban proposal itself,response to Italy's proposition was mixed.Supercar enthusiasts weregrateful to get a lifelinethough some have wonderedabout the specific inclusionof Ferrari and Lambowithout any mention of Maseratior any other similar companies.The French and Germangovernments have also made noiseabout keeping the full ban,but pushing back the timeline.But Porsche CEO, Oliver Bloom,has publicly campaignedagainst the Italian exceptionsaying that everyautomaker must contributeto the fight against climate change.It probably doesn't hurt that he's so farahead of the competitionon electrification.And remember, Porsche alsorecently gained accessto Rimac EV tag from the Bugatti deal,I talked about a few episodes ago.Ironically Lamborghini could also accessthat tag since they're partof the same corporatehierarchy as Porsche.They just don't want to, for some reason.So what's next?Both the gas engine ban and the supercarcarve-out are just proposals for now.And it could be up to two yearsuntil it's actually voted on.Even if the band passes,there'd still be more than a decadeuntil the sundown actually arrives.So, there's no need to planfor a funeral of the event to go yet.It is worth noting that this kindof haggling over details and exceptionsis fairly typical for theEU legislative process.At the same time, it's also worth notingthat the future of the human raceisn't generally hanging in the balance.And that brings us to themoral question lurkingunderneath all the shiny carsand political machinations.Does being rich, givessomeone more right to pollute?Because that's essentiallywhat Italy is proposing here.Under Roberto Cingolani's plan,people who can afford todrop 200K on a Lamborghini,will get to operateunder different rules than everyone else.As much as we all love theroar of a 12 cylinder engine,is that really fair?Italy's proposal alsomight have ramificationsfor other aspects of the auto industry.If there's an exceptionwritten for luxury cars,then it might increase the chancesthat motor sport organizationsrequest something similarand down the roadguidelines for classic carscould eventually be upfor discussion as well.And it's a whole can of SpaghettiOs.Unfortunately there's no easy solution.And like it or not, the auto industrywill have to answer somebig existential questionsover the next decade or so.But luckily I know theperfect guy to do it.A rich dude who used to buildmissiles. Good luck, Roberto.(calm piano music)(water blooping)- Hey friend. 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