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Carmakers and rental firms urge EU not to mandate EV fleet targets

BMW, Toyota and other automakers and leasing companies from Europe have urged the European Commission to not set mandatory targets on electric vehicle purchases by corporate fleets. They argue that it would be prohibitively expensive and counterproductive.

On December 16, the EU executive will unveil a number of proposals that could allow more flexibility for the European automotive sector to meet CO2 emission targets and ease an effective ban on sales of new internal combustion engine vehicles in 2035.

The package will include plans for corporate fleets such as company cars which account for 50-60% or the new car sales in Europe.

In a letter sent to Ursula von der Leyen, President of the European Commission and other Commissioners, the 67 signatories stated that the major obstacles to the adoption of EVs are high purchase and operation costs as well as a lackluster charging infrastructure.

In the letter, it was stated that a mandatory target could be "highly detrimental" and that companies would have to choose between retaining older cars for longer or reducing their new vehicle purchases due to high costs.

Instead, it said that the key to success in European countries where the EVs are updated the fastest is a combination between incentives and investments in charging infrastructure.

Second-hand EVs also need incentives, as many leased vehicles are sold after two to three years.

The signatories include BNP Paribas Arval, Societe Generale Ayvens and Avis Bolt and Hertz, as well as some national rental and lease associations.

Climate Group, a campaigning association, supports a mandated goal and points out that more than 120 companies have committed to 100% electric fleets. These include EDF, Ikea and Siemens.

Lobbying has been frenetic for the EU's Automotive Package, whose publication has been delayed a week. (Reporting and editing by Jan Harvey; Philip Blenkinsop)

(source: Reuters)