How to encourage European industrialists to produce more electric cars on the Old Continent? Three French equipment manufacturers, Valeo, Forvia and OPmobility, not the least meaningful, are demanding a minimum quota of local content of 75%. Is this viable?
We are going through a period of profound restructuring of the global automotive industry. faced wiht the rise of Asian manufacturers and the offensive industrial policies pursued in the United States or China, the European Union is seeking to strengthen its industrial sovereignty, particularly in technologies related to electrification. The global market as we have known it in recent years shows its limits. Each major power is seeking to gain independence.
75% local content in electric cars?
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Valeo, Forvia and OPmobility are demanding 75% of “local content” in electric cars manufactured in Europe. The three French equipment manufacturers believe that Europe still has a solid industrial base, capable of producing a large majority of automotive components, excluding batteries. According to them, this base must be protected by clear rules in order to avoid the final assembly of vehicles being carried out in Europe with an increasing share of imported parts, to the detriment of employment and investment.
The European Union’s Revised Real Driving Emissions (RDE) Standards
The European Union substantially tightened its Real Driving Emissions (RDE) standards for vehicles, effective July 1, 2025, aiming for more accurate emissions testing and a reduction in discrepancies between laboratory results and on-road performance. These changes, mandated under Euro 7 regulations, represent a substantial shift in how vehicle emissions are measured and regulated across member states. The Euro 7 regulations, finalized in October 2023, build upon the existing Worldwide Harmonised Light Vehicles Test Procedure (WLTP) but address its limitations in reflecting real-world driving conditions. The WLTP, while an improvement over previous standards, has been criticized for underestimating emissions, particularly of particulate matter (PM) and nitrogen oxides (NOx). The RDE standards aim to close this gap. The core difference lies in testing methodology. WLTP is conducted in a controlled laboratory setting.RDE involves testing vehicles on public roads,using a Portable Emissions Measurement System (PEMS) to capture emissions data during normal driving cycles. This includes a variety of conditions – urban, rural, and highway - and different driving styles. According to the European Commission’s official declaration, the new RDE standards will apply to all new vehicle types approved from July 1, 2025, and to all new vehicles registered from July 1, 2026. RDE testing now incorporates stricter requirements for several key areas.Firstly, the testing window has been expanded to include a wider range of driving conditions and vehicle loads. Secondly, the conformity factor – the margin allowed between laboratory and on-road emissions – has been reduced, particularly for NOx. Previously, the conformity factor for NOx was 1.5, allowing on-road emissions to be 50% higher than laboratory results; this has been lowered to 1.29 for gasoline vehicles and 1.43 for diesel vehicles. Moreover, the regulations introduce stricter requirements for particulate matter (PM) emissions, including a minimum number of PM measurements during each test and more stringent criteria for validating the accuracy of PEMS equipment. The Euractiv report on the Euro 7 agreement details how these changes were reached after intense negotiations between the European Parliament, Council, and Commission. Vehicle manufacturers face significant challenges in meeting the new RDE standards. They will need to invest in advanced emission control technologies, such as improved catalytic converters and particulate filters, and refine their engine calibration strategies.The European Automobile Manufacturers’ Association (ACEA) has expressed concerns about the cost of compliance and the potential impact on vehicle prices. For consumers, the new standards are expected to led to cleaner vehicles and improved air quality. Though, some analysts predict that the increased cost of compliance might potentially be passed on to consumers in the form of higher vehicle prices. A Transport & Environment analysis suggests that the long-term benefits of cleaner air outweigh the potential short-term cost increases. Enforcement of the RDE standards is the responsibility of national authorities within each EU member state. These authorities will conduct on-road emissions testing and verify that vehicles comply with the regulations. The European Commission will oversee the implementation of the Euro 7 regulations and ensure that all member states are applying the standards consistently. The European Environment Agency (EEA) plays a crucial role in monitoring air quality across Europe and assessing the effectiveness of the Euro 7 regulations in reducing vehicle emissions. The EEA publishes regular reports on air quality trends and provides data to support policy decisions. The Euro 7 regulations are not a static set of rules. The European Commission has committed to reviewing the standards periodically to ensure they remain effective in reducing vehicle emissions and protecting air quality. Discussions are already underway regarding potential revisions to the RDE standards, including the introduction of more sophisticated testing procedures and the inclusion of greenhouse gas emissions in the testing regime. Euro 7 Regulations and the Shift from WLTP
Specific Changes to RDE Testing Procedures
Impact on Vehicle Manufacturers and Consumers
Enforcement and Monitoring of RDE Compliance
Future Developments and Potential Revisions
