José López Tafall, general director of Anfac, sees well the change of course that the Government wants to give to the Perte (strategic plan for recovery and economic transition) and stresses that the previous model was done with good intentions, but with excessive complexity.
Postponing the implementation of the Euro 7 regulation on polluting emissions is now the main short-term objective.
Yes, because neither the deadlines nor the detail of the text are acceptable, and for the Spanish industry it is quite harmful. This dossier should go a long way during the Spanish presidency of the European Union, and for this reason the position of the Spanish Government, which also represents the second largest European automotive manufacturer, is very important. Therefore, you have a special responsibility.
And what receptivity have they found in the Government?
The receptiveness in principle is good, what we are waiting for is that clear positions are materialized in Brussels and in everything that is the processing of the file, and eventually in the European Council, where the role of Spain is very important.
When you say rationalize, do you mean delay?
There are several things about Euro 7 that are unassumable. First of all, the implementation deadlines. A period of around two years should elapse after all the development regulations are known, which is what really determines the scope of Euro 7.
And it would be postponed until what year?
By 2027 or 2008. It depends on when the standard is drawn up. In addition, several of the test conditions that are foreseen must be grounded in reality, because things are being considered that are neither possible nor tested and some have not been agreed upon.
Are you referring to the requirements with the components?
Yes, among other things. You want to double the durability of the components. That implies development and more costs.
What impact can it have?
Several of the brands that manufacture in Spain, Anfac partners, have already warned that with the new standard as it is proposed they would have to stop production, because it is not possible to adapt current equipment and vehicles to Euro 7. And invest in optimizing some combustion engines that are already very efficient and in parallel developing everything that is the new lines of electrification or batteries financially is not easy. There is no money for everything.
What other measures do you see unaffordable?
It is also a priority for us to streamline the CO2 regulation for industrial and heavy vehicles, which is also especially important for a country like Spain, because a large part of our foreign trade depends on road transport. In this area we have a very, very low penetration of electrified vehicles, I think it is 0.7%, and very important CO2 emission reduction requirements.
They are also negotiating with the Government the new Perte. What improvements do you expect?
We have a very fluid relationship with the General Secretary for Industry, Pachi Blanco, and we share the same objective: that the more than 2,000 million surplus funds from Perte be used as soon as possible and serve to mobilize driving investments. But without all the administrative and regulatory requirements that made the first call too complex.
How is it now?
What is indicated to us are two possible calls. One more focused on what is everything related to batteries, the refining of materials, minerals and all components. These projects would benefit from the line of the new European aid framework. Not the general, but the specific time frame that has been put in place to deal with US aid competition. And there would be a second, slightly more open line of industrial policy within the framework of the general regulation of State aid. The Perte as a model disappears, it was a well-intentioned plan, but very difficult to land. We could say that it would become two miniperte or two lines of industrial policy with European support.
Does the sector see it well?
Yes, we see it well. The only caution we have is that tractor projects are effectively prioritized, in which a vehicle manufacturer must be involved, even in battery vehicles. Because what is not being considered is manufacturing batteries here for export, but rather for use in factories in Spain. It wouldn’t make much sense to award funds to a battery project that didn’t have a tie to an automaker because it would lack demand. In reality, any of the large investment projects must also have the point of view of a car manufacturer. If not, you can end up encouraging projects that then do not land on the market.
Should the new model be negotiated with Brussels?
What Industry has told us is that a good part of this negotiation is very advanced and that is why they are counting on putting out some calls before the summer.
Can hybrid cars be included in the aid?
Manufacturers who want to produce hybrid vehicles in Spain should be helped to make these investments. And if European funds cannot be used for this, national funds must be applied.
The year has started better than expected.
Better than last year, not better than before the pandemic. We are doing better, but that does not mean that we are doing well, we are around 30% below in sales and 13% in production compared to 2019. The supply chain is beginning to normalize, but there are still stops at the plants.
When do you expect to recover one million sales units?
We would like to recover the 1.2 million. This year, if the trend consolidates, we could be above 900,000.
And the electric ones do not take off.
You cannot set ambitious goals without ambitious measures. It is not only a question of money, but of efficiency so that it is spent well and reaches the citizens. Anfac has launched the 2023-25 ​​roadmap to make up for the delay we are in with the European average with tax measures to encourage citizens, a more agile Moves plan and more charging points. In Spain, electrified vehicles have a market share of around 10% compared to the 22% European average. And if we continue at the rate we are going, with which the quota is not growing, we will fall even further behind.
Do you see a future in synthetic fuels, e-fuels?
Time will tell if they are a niche solution or if they go further. Today it is not a real solution, the same as hydrogen, because it is very expensive and underdeveloped. We should not further confuse the consumer, who is quite confused with technology and with messages against the private vehicle. The reality today tells us that the technology that prevails, that is accessible and that complies with zero emissions, is electrical technology.
