The European automotive industry is calling for an easing of climate protection rules in the European Union (EU) due to sluggish sales of electric cars.

"We need a realistic path to decarbonize the European auto industry - one that is market-driven and not punitive," Ola Källenius, who has been president of the European Automobile Manufacturers' Association (ACEA) since January, said in a letter to the European Commission published on Thursday. The industry is sticking to the goal of zero-emission mobility. But the pace of the transition depends on the customer, and that is moving too slowly. The regulation that starting this year, missing CO2 reduction targets will be penalized with fines must be changed. Otherwise, the industry will lack the means to make the transition at a critical phase of the transformation.

The association had already spoken out in December in favor of giving the industry more time to achieve the CO2 reduction targets. Last year, sales of pure electric cars in the EU fell by 5.4 percent by November, with the market share shrinking to 13 percent. According to ACEA, it would have to be ten percentage points higher to achieve the required reduction in CO2 emissions from new car fleets to an average of just under 94 grams per kilometer. According to ACEA estimates, the carmakers face potential fines of around 15 billion euros.

State incentives, the discontinuation of which in Germany caused sales to shrink by almost a fifth last year, could also be helpful, added Källenius, CEO of Mercedes-Benz. The car lobby wants to discuss its proposed changes in a "strategic dialog" with the European Commission that is due to begin soon. EU Climate Action Commissioner Wopke Hoekstra rejected a softening of the rules, which the automotive industry has the backing of politicians in Germany and other countries for, in December.

With the inauguration of the new US President Donald Trump in mind, Källenius stated in the letter that the European automotive industry is an important part of the American economy. "We look forward to working with the new administration on policies that promote the growth and development of American industry and EU-US trade relations." He said the EU must advocate fair and free world trade and oppose protectionism. He therefore reiterated the call for the EU and China to reach an agreement soon in the dispute over EU punitive tariffs on subsidized electric cars from China.

(Report by Ilona Wissenbach, edited by Ralf Banser. If you have any questions, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)