race for electrificationone yes, community regulationse can cause price increase risk Implementation of new environmental regulations of vehicles in the coming years euro7 He did not comment at his meeting with the press, as it would have the opposite effect, far from being a gateway to the development and push of the electric vehicle promoted by the European Commission. head Volkswagen Group Distribution In Spain, Francisco Pérez Botellowarning of impending price increase The necessary changes that cars will have are imposed in accordance with European law. “We are at risk” 20% drop in sales and closure of production lines. The industrial implementation cost of the new Euro7 standard is high and there is a better environmental solution“replacing old vehicles”, broadly confirms Perez Botello.
Head of the German consortium in Spain (including Seat and Cupra) Common front in Europe if you intend to save the national industry. “They have to be more active, especially since Spain depends on the production of cars in the medium and small segments, that’s where the new regulation will affect the most. increased material cost (valuable in many cases) as required by the Euro7 standard”, explains Botello. directly affects the price number of vehicles as manufacturers barely have a profit margin of 8%.
cost technological investment And Industry According to the person responsible, it assumes Volkswagen Group DistributionA an increase of approximately 2,000 euros, That’s far from the 150 euros they charge from the European Union. “I trust the scientific work of our engineers more than the words of a European politician,” Pérez Botello jokes. “Euro7 is a marginal development as it forces manufacturers to invest resources towards electrification, which means we will fall into a lack of competition in the European industry.” Moreover horizon 2035 (combustion vehicle sales ban) and it invests millions of dollars in those models.they will be obsolete in ten years It will be the closest thing to an industrial pump. “There is not enough time amortize The investment assumed by the Euro7 standard”.
Electrification and scrapping
For all these reasons, Francisco Pérez Botello advocates the electrification path and compliance with common sense environmental regulations. scrapping incentives your old cars. Considering that 47.2% of cars on the road in Spain are over 15 years old, the solution is to scrap them. ” manufacturers we want to support because we believe that these initiatives make a lot of sense. Can be reversed by betting on climate change scientific measures, not ideologicalS. That is why attacking park regeneration is more effective than setting a stricter environmental standard,” he admits. 2035 with a park even older than the current one before the rise in car prices. “Furthermore, scrapping will be faster and more efficient than any arrangement for the electrification of the park,” he says.
Manufacturers rely more on the so-called “refresh chain”; this is someone with a 15 year old car 7 year old, 7 year old, 4 year old and a new 4 year old. But with this measure, the air quality problem can be solved to a large extent. Anfac, the manufacturers’ association in Spain, urged the Government to be belligerent about regulations against Europe and to improve the age of the park (currently 13.9 years old). “We have proposed several measures on three main axes: automobile taxation supporting, working on electric vehicles incentives (which is more of a deterrent than anything else and does not apply to the IRPF) and a charging infrastructure plan. In this last aspect, we should look at countries like Portugal, which has a ‘single window’ that removes the bureaucratic problems we have now and makes it harder to deploy to the network.
In parallel with this analysis of current developments in the industry. Pérez Botello also examined the group’s situation in Spain. Profitability of consortium dealers in our country will increase in 2022. 2.5% and 3% “well above” the national average of 2.1%. According to Botello, the 2023 forecast puts profitability above 2%. The group will start implementing this year agency model adapted for electric vehicles and fleets. The person in charge of Volkswagen emphasized that they will do this “hand in hand”. commercial network. Our biggest resource is our dealers so that we can successfully implement the agency model,” he said.
about his arrival chinese brands to the European market, Francisco Perez Botello Competition is always welcome, but he says you have to play by the same rules. “There has to be a congruence between what European industry demands and the country of origin of the good in question. It’s about equal conditions, not protectionism. we all compete at the same level of demand And may the best one win.”