Clean Air For Europe and Vehicle Delays Explained
"Understanding the Clean Air for Europe Program and Its Impact on Your Vehicle Order"
Introduction
The Clean Air for Europe (CAFE) program is a significant initiative undertaken by the European Union (EU) to improve air quality and protect public health and the environment. Air quality regulations and standards set by the EU will still be enforced in the UK following Brexit as part of the Air Quality Standards Regulations 2010.
As customers eagerly await their new car orders, it is essential to understand the broader context of the CAFE program, how it affects the automotive industry, and how it could impact the build weeks and delivery schedule of your new car.
What is the Clean Air for Europe Program?
The CAFE program focuses on achieving and maintaining air quality that is safe for human health and the environment. It addresses air pollution from various sources, including transportation, industrial activities, and agriculture. The program's objectives include setting air quality standards, establishing national emission reduction targets, implementing long-term strategies, and monitoring and assessing air quality.
Air Quality Standards and Vehicle Emission Regulations
One of the central components of the CAFE program is the establishment of legally binding limits on concentrations of key air pollutants, such as Nitrogen Dioxide, Sulfur Dioxide, Particulate Matter, and Ozone. There is evidence that suggests these air pollutants may have a considerable effect on our health and on the environment. According to the Office for National Statistics, chronic exposure to particulate matter can contribute to the risk of developing cardiovascular and respiratory diseases. In addition, Ozone gases can damage wild plants, crops, and forests, and higher levels of ground-level ozone could cause breathing problems.
To contribute to cleaner air, vehicle manufacturers are subject to stringent emissions standards known as Euro standards, which set strict limits on emissions of pollutants from new vehicles.
Vehicle manufacturers must ensure that their vehicles comply with these standards, which are becoming progressively stricter. This has led to a significant shift in the automotive industry, with manufacturers investing heavily in cleaner technologies and alternative fuel options such as electrification and hydrogen fuel cell.
Impact on Vehicle Manufacturers
The transition to cleaner technologies is not without challenges for vehicle manufacturers. These challenges include supply chain disruptions, as manufacturers integrate compliant components into their vehicles. Quality control issues may arise with the introduction of new technologies, leading to potential delays in production as manufacturers address and rectify any problems.
Furthermore, the CAFE program has implications for the types of vehicles that manufacturers prioritise. Fines for non-compliance with emission standards create strong incentives for manufacturers to shift their production capacity towards zero-emission vehicles (ZEVs) like electric cars. As a result, manufacturers may prioritise the production of ZEVs over traditional internal combustion engine (ICE) vehicles, as ZEVs help lower overall emissions and avoid fines.
Emission Targets
The emission targets were phased in from 2020 and have applied in full since 2021. They set an EU wide fleet emission target of 95 grams of CO2 per kilometre for new cars. That means each car manufacturer faces a fine of €95 per new car registered for each gram on average above this target over the full fleet of vehicles. This is an estimated calculation, as each different vehicle manufacturer will face separate weight-adjusted targets, but it gives you an idea of the scale of the fines that vehicle manufacturers may face. It’s been reported that General Motors and Stellantis paid record combined penalties for failing to meet U.S CAFE requirements for recent years of $363 million!
This is why you are seeing more and more vehicle manufacturers moving to fully electric vehicles, because the tailpipe CO2 of an EV is zero, the more electric vehicles registered, the lower the average of overall emissions across the entire range of vehicles including Petrol, Diesel, PHEV, Hybrid and EV.
How This Affects Your Car Order
These developments can have a direct impact on your car order and delivery schedule. Here's what you need to know:
- Supply Chain Disruptions: Stricter emission standards may result in supply chain disruptions, leading to potential delays in production and delivery. As manufacturers adapt to new regulations, they may face challenges in sourcing and integrating compliant components.
- Shift to Zero-Emission Vehicles: As manufacturers prioritise ZEVs to meet emission targets, there may be a shift in production capacity away from ICE vehicles. This could extend the build weeks for ICE vehicles and potentially delay delivery. Vehicle manufacturers can change the build dates at any time during the order process.
- Quality Control Issues: The introduction of new technologies to meet emission standards can sometimes result in unforeseen quality issues, leading to delays as manufacturers address these problems.
- Increased Demand for ZEVs: Government incentives for ZEVs, heightened awareness of environmental issues and potential fines have led to increased production demand for electric cars. This surge in demand can put a strain on production schedules, potentially impacting the delivery of your ordered vehicle.
Conclusion
The CAFE program plays a critical role in addressing air pollution and protecting human health and the environment. The transition to cleaner technologies and ZEVs is essential for achieving a more sustainable and environmentally friendly future. The Clean Air for Europe program and targets associated to it runs from January to December, the calendar year. As we approach the end of a year, vehicle manufacturers begin assessing their overall CO2 emissions targets to make sure they limit the fines they will be subject to.
This means that they will prioritise the build of lower or zero emission vehicles above traditional petrol and diesel engine variants. If you have a Petrol or Diesel engine vehicle on order, it may be subject to delay due to all the reasons listed above.
While delays in vehicle delivery can be frustrating, we hope this detailed explanation helps you understand the broader context and the reasons behind these delays. We will always do our upmost to make sure you get your new car or van on time, but we wanted to make your aware of some of the challenges we face especially as we come into the last quarter of the year.
At Vertu Lease Cars, we are committed to keeping you informed and providing exceptional service. If you have any questions about your car order or are interested in exploring ZEV options, our dedicated team is here to assist you.
