Increasing European legislation governing the safety and environmental impact of cars is having a negative effect on the car industry, Ford of Europe boss, Steven Odell claims, speaking in an exclusive interview with news agency Headlineauto.
According to Odell, the cost of such legislation, much of it unused or even unnecessary is is a staggering £3,500 per car. Using his position within the carmakers’ association ACEA he plans to challenge EU commissioners and ask if they want a car industry or not.
"The legislation they keep coming up with would indicate not," he said.
Once, carmakers would introduce new technologies on their top luxury models, eventually cascading it down through their range of cars. Increasing rules over safety equipment and emissions means that expensive equipment increasingly has to be fitted to the smallest cars.
Odell said: "The European car industry is struggling as it is and we need economies of scale to be able to make a profit. Our problem is the rules are different all round the world. There are different CO2 requirements for example and even the EU does not regulate individual countries. That’s a role ACEA has to play more strongly."
Despite being sceptical over projections for EVs (which have suggested that by 2020 their market presence could be anything between 10 per cent and 20 per cent of all cars on the road), Mr Odell said that the car maker was doing a lot of ‘behind the scenes’ in developing electric and hybrid models.
"I think it will be less than 10 per cent and the main reason for that will be affordability. EV technology will still be expensive and sales will be dependent on government subsidies – and I think the next few years are going to be very interesting in terms of getting money out of governments.
"I have seen research that showed 50 per cent of people surveyed would consider an EV or some sort of hybrid. But when they were told the price only 5 per cent would actually buy. The equation does not work.
"We need to find a way of helping people make that decision and it all depends on the level of subsidy you are prepared to pay. Car companies can do what they can but you can’t lose your shirt every time you sell a car."
Would Ford ever be prepared to make a marginal loss on some cars that it sells? "We will have to. If we price these technologies on 100 per cent cost recovery no one will buy one.
"That said, EVs are part of the solution, as are fuel cells, and China is intent on the industrialisation of these. That’s where it will happen first."
