Recasens (Anfak): “We are negotiating with the government on direct assistance for the purchase of electric vehicles for 2025” | Companies

June 13 marked a turning point in the relationship between automakers and the Spanish government. That day, Anfac president Wayne Griffiths (CEO of Seat and Cupra) unexpectedly announced his resignation due to the executive’s alleged “inaction” on the electric car. At the time, this type of vehicle was running out of funds to purchase (it expired on July 31), following electric trucks that had been without subsidies for months. His resignation had an almost immediate effect: The executive branch approved a $600 million aid package to placate a sector that has poured billions into the transition to electric vehicles, which is not gaining traction and whose market share is just 5% this year. . Taking up the baton from Griffiths is Josep Maria Recasens, current director of strategy and business development for the Renault group and president of the French car company in Spain, who receives this newspaper. in the first interview he gives to the media since taking control of Anfac.

Question: What is your relationship with the government after your predecessor slammed the door? How was your first meeting with President Pedro Sanchez?

Reply: It was a very positive meeting. I would highlight the desire to promote the industrial and economic transformation of the country, trying to balance the needs of the short and long term. We both agree that it is very important that we develop this plan for the future in a consensual and broad way. In this context, I believe that the complicity or understanding was very clear and I at least personally felt the predisposition to help the sector in this sense, to prepare for a titanic transformation in the future and to help us in the shortest possible time. -urgent measures, which essentially represent the expansion of Moves III and the development of public charging infrastructure.

Question: Are you already negotiating the EV assistance scheme for next year (Moves III expires on December 31)?

A: Yes, we are very confident that this expansion will come to fruition. I believe that there is complicity, understanding and comprehension of this plan for 2025. And I would say more by including a modification of the assistance system so that it is a direct subsidy and not a subsidy with a subsequent delay for the client and, who says the client, also says the company.

Question: Did the government inform you that this would be direct assistance?

A: That’s what we talk to them about.

Question: Will it be a scheme in which the state contributes its share, but the brands also help (in the current Moves III, the subsidy reaches a maximum of 7,000 euros if an old car received from European funds is scrapped)?

A: This is something that we have to finalize, but I believe that the will of both sides is loud.

Question: In an interview with this publication a year ago He said that it is necessary to ensure that European manufacturers compete on equal terms with Chinese ones. Do you think we play by the same rules today?

A: I am referring to the report prepared by Brussels, which concluded that competition is unfair. And as a consequence of this, Brussels announced the introduction of duties.

Question: What is Anfac’s position on tariffs after Germany and Spain asked for them to be scrapped?

A: It is not in anyone’s interest to get into a trade war. We must realize that Europe has nothing in common with the United States; Europe cannot afford to close the door to China under any circumstances. Because we have an important balance of trade with China and a very pressing dependence on both critical materials like lithium and recycling black mass (a mixture of basic materials) to make our batteries. Closing the door would be a huge mistake.

Q: One of the concerns you expressed to Sanchez at the meeting was the emissions targets that brands need to achieve next year, and that the sector is now being asked to relax?

A: Yes, the most immediate thing that faces us is a kind of sword of Damocles – legislative compliance in 2025 with the European CAFE regulation. This means that for every car and gram that exceeds 95 grams of CO2 (this year’s average is 115.1 grams, and next year it will be set at an average of 93.6 grams), the manufacturer must pay a fine. The reality is that to achieve this goal, we as a European fleet must achieve a 20% EV sales quota. Today we have a quota of 14%. The jump that needs to be made from 14 to 20 is an impossible mission. In no previous year has EV growth come close to the level needed by 2025. Consequences? There are three scenarios. The first will pay fines amounting to about 15 billion euros. Secondly, if this is a natural electricity market, then in order to avoid paying fines, manufacturers will reduce the production of cars with internal combustion engines.

Question: What will this drop in production mean?

A: We are talking about the closure of 7 to 8 European factories over the next year, with all the ensuing consequences from a social, reputational and even political point of view. For me, the plant is about 300,000 cars a year, so we’re talking about 2.4 million cars not produced next year in Europe. The third scenario is a pan-European promotion of 500,000 electric vehicles, which will not be enough to exceed natural market demand. If we accept the simple rule of three, then 500,000 electric vehicles with a subsidy of 6,000 euros each would amount to 3,000 million euros. To all this we must add profit warning Mercedes-Benz or BMW, or an announcement about the possible closure of the Volkswagen plant. We are risking the future of the European automotive sector in 2025.

Question: Countries such as Italy are in favor of leaving the EU. ban on the sale of cars with internal combustion engines in 2035. Do you think it would be beneficial for the industry to change the rules of the game now, after so many billions of investments?

A: It is not only about changing the rules of the game, but also about flexibility, as was the case with the Euro 7 emissions standard. Regarding the goals for 2030-2035, the ban on cars with internal combustion engines, this decision will largely depend on what will happen. This will happen in 2025, giving us a more realistic picture of the adoption or rejection of electric vehicles in Europe.

Question: September was a good month for registrations and for electric vehicles, thanks to Tesla’s excellent performance. Are you confident that this will add momentum to the goal of exceeding one million registrations?

A: We need to start getting used to a very volatile and very uncertain market where there may be months where monthly sales reports are even produced and other months where sales are lower. This is due to several factors, but the fundamental one is the price war between developers. Rational or irrational price movements are reduced in short periods of time along with excess capacity in some plants to cover fixed costs. There may be times when manufacturers have to push these cars to market and artificially one month seems very good, but maybe you come off with two or three disastrous months. We as manufacturers are turning to the flexibility and agility of our workforce and our operations to be able to adapt to this instability that we will experience for at least the next 12 months.

Question: In case production, second quarter was badand all months are in the red. Do you think the year will end positively?

A: If it is positive or negative, I take it as zero. Because growth by 1.5 or 2 or not growth by 1 or 1.5 for me is a stable market. Europe is not growing, moreover, in terms of sales, Europe is not reaching pre-pandemic levels. And in recent years, we have lost more than two million vehicles in annual registrations. Europe was a market of 16 million cars, and today it is a market of 14 million annual registrations.