The European Commission's proposed Euro 7 regulation will increase the manufacturing costs of trucks to close to €12,000, the European Automobile Manufacturers’ Association (ACEA) is warning.

It points to a study by Frontier Economics, commissioned by ACEA, which has found that the Euro 7 regulation will add per vehicle costs of around €2,000 for cars and vans with an internal combustion engine, and almost €12,000 for diesel trucks and buses.

These figures are four to ten times higher than the Commission’s estimates in its Euro 7 impact assessment (€180-450 for cars and vans, and €2,800 for trucks and buses).

The report notes that the EU estimates comprise direct manufacturing costs only, primarily for equipment and investments. It warns that these additional costs do not correspond with purchase prices. Price increases would likely therefore be higher than the figures cited in the assessment.

Sigrid de Vries, director general of the European Automobile Manufacturers’ Association (ACEA) said: "The European auto industry is committed to further reducing emissions for the benefit of the climate, environment, and health.

"However, the Euro 7 proposal is simply not the right way to do this, as it would have an extremely low environmental impact at an extremely high cost.

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"Greater environmental and health benefits will be achieved by the transition to electrification, while at the same time replacing older vehicles on EU roads with highly efficient Euro 6/VI models.”

In addition to direct costs, ACEA is warning that the Euro 7 proposal will trigger indirect costs, such as higher fuel consumption. Over a vehicle’s lifetime, this could increase fuel costs by 3.5% – amounting to an extra €20,000 for long-haul trucks and €650 for cars and vans.

ACEA says that these indirect costs – which it claims are ignored in the Commission’s impact assessment – come on top of the direct costs. It warns that they would add to the total cost of owning a vehicle, placing additional financial pressures on consumers and businesses at a time of high inflation and rising energy prices.

The ACEA added that whilst the European auto industry is committed to further reducing emissions it insists that "the Euro 7 proposal is simply not the right way to do this, as it would have an extremely low environmental impact at an extremely high cost."

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