New EU rules for automotive industry
The European Union has approved a new regulation which will have a significant impact on the automotive industry. It changes the rules covering the entire life cycle of motor vehicles, from design through manufacturing and sale to environmentally sound treatment of end-of-life vehicles.
Focus on recycling as early as in the vehicle design stage
Automotive manufacturers will have to design vehicles so that individual parts can be easily dismantled and the materials re-used or recycled. The aim is to reduce waste and increase the use of secondary raw materials in the production of new cars.
Another significant new requirement is the introduction of binding targets for the use of recycled plastics. Within six years, each new vehicle type will have to contain at least 15% of recycled plastics, rising to 25% within ten years. At least one fifth of this amount must come directly from end-of-life vehicles or used automotive parts, (the so-called “closed loop”).
New obligations for manufacturers
From 1 September 2029, extended producer responsibility will be introduced. In practice, this will mean that manufacturers will have to cover the costs of the collection and treatment of vehicles that have reached their end-of-life stage, regardless of the EU member state in which they are located.
Manufacturers will have the extended responsibility for vehicles that they place on the market in an EU member state for the first time, even if the vehicle has previously been placed on the market in another member state.
Stricter rules for used vehicles
The changes will also affect dealers in used vehicles. Businesses will have to demonstrate that the vehicle being sold is not an end-of-life vehicle or that it has a valid roadworthiness certificate.
For transactions between private individuals, one of these documents will be required only if the vehicle is declared a total economic loss or if the sale is concluded via an online platform. The rules for exporting technically non-roadworthy vehicles outside the EU will also be tightened.
What does this mean for the automotive industry?
The new rules will apply in full to passenger vehicles (cars) and light commercial vehicles (vans), while heavy vehicles (such as lorries), motorcycles and special-purpose vehicles will be subject to less stringent requirements.
Manufacturers and their suppliers will need to adapt vehicle design, ensure a higher proportion of recycled materials and prepare for new obligations regarding the treatment of vehicles at the end of their life. Companies in the automotive sector should therefore start preparing well in advance.