KEY NEWS 1/4 — European Union
The Commission's proposal to impose tariffs on battery electric vehicle imports from China gains necessary support from EU Member States.
Europe is moving toward imposing definitive tariffs on Chinese electric cars. In the lengthy journey of European bureaucracy, Member States have given the green light to the European Commission to continue with its plans.
The European Commission revealed its provisional decision in early September to impose definitive countervailing duties on battery electric vehicle (BEV) imports from China, marking a major milestone in the anti-subsidy investigation that began in October 2023. However, it was on October 4, 2024, that the Commission’s proposal received the necessary backing from EU Member States (10 votes in favor, 5 against, and 12 abstentions) for the adoption of these definitive tariffs, bringing the investigation closer to its conclusion.
The draft presented includes key adjustments to the provisional measures initially announced on July 4, 2024. Among the proposed adjustments are:
- Revision of Duty Rates: Countervailing duties are proposed to range from 17.0% to 36.3% for major cooperating companies, 21.3% for other cooperating companies, and 36.3% for non-cooperating companies.
- Individual Duty Rate for a Specific Manufacturer: A specific subsidy and duty rate is suggested for one particular Chinese manufacturer.
- No Retroactive Charges: The provisional decision does not foresee retroactive application of countervailing duties.
- Reduced Rates for Some Exporters: Some Chinese exporters associated with EU-based producers could benefit from a reduced duty rate, applicable to their cooperating companies.
The vote on Friday, October 4, does not change the percentages applied since last summer in the form of countervailing duties. The EU and China will continue working intensively on a possible alternative solution that fully complies with WTO rules, adequately addresses the harmful subsidization established by the Commission, and is monitorable and enforceable.
A final regulation from the Commission, with the definitive findings of the investigation, is expected to be published in the Official Journal by October 30, 2024. The resulting tariffs would remain in effect for five years, with a possibility of extension upon justified request and further review.
The Commission emphasizes that these findings are an intermediate procedural step and may be adjusted based on feedback and evidence provided by stakeholders.
The investigation, initially announced by European Commission President Ursula von der Leyen in September 2023, responds to concerns over the increase in low-cost electric vehicle imports from China to the EU. The Commission has highlighted its commitment to strict legal standards and compliance with EU and World Trade Organization (WTO) regulations.
This step is crucial for the EU in its effort to combat perceived unfair trade practices in the electric vehicle sector. The final decision on these countervailing duties could have a significant impact on the global electric vehicle industry and EU-China trade relations.
KEY NEWS 2/4 — UNECE
UNECE Proposes New Regulation to Prevent Pedal Misapplication and Improve Braking Efficiency in Electric Vehicles
The United Nations Economic Commission for Europe (UNECE) has introduced a new regulation draft, UN R.17X, targeting Acceleration Control for Pedal Error (ACPE) to address the widespread issue of drivers accidentally pressing the accelerator pedal instead of the brake pedal. This regulation, spearheaded by the Working Party on Automated/Autonomous and Connected Vehicles (GRVA), aims to reduce incidents of sudden, unintended acceleration, a common cause of serious road accidents, particularly among older drivers.
Key Points of the Proposed Regulation
The new regulation, primarily applying to M1 category vehicles with automatic transmissions, includes revised duty rates and a system designed to detect objects in front and rear of the vehicle, automatically preventing unintended acceleration. Although limited to passenger vehicles with automatic transmissions—where pedal misapplication occurs most frequently—other vehicle categories can qualify upon manufacturer request.
This initiative builds on global crash data showing that older drivers are more prone to pedal misapplication. For instance, in Japan, seniors are eight times more likely than younger drivers to mistakenly press the accelerator instead of the brake. With populations aging worldwide, particularly in Europe, North America, and Asia, the number of older drivers is expected to rise significantly, thus increasing the risk of pedal misapplication incidents.
The Rise of Automatic Transmissions and Pedal Misapplication
Research from Japan and the UK further reveals that pedal misapplication incidents are more common in vehicles with automatic transmissions. In the UK alone, seven out of eight cases of pedal misapplication are associated with automatics. The regulation, therefore, restricts its scope to vehicles with automatic transmissions and aims to address these incidents through forward and rear detection systems.
The proposal is anticipated to move forward at the 194th session of WP.29 from November 11 to 15, 2024, with implementation targeted for June 2025.
New Braking Systems for Electric Vehicles: Boosting Efficiency
Alongside pedal error prevention, the UNECE has also advanced new regulatory standards for braking systems in electric vehicles, prioritizing energy efficiency in the rapidly expanding EV market. Traditional hydraulic braking systems convert a vehicle's stored energy into braking power, relying on drivers’ muscular energy or energy reserves that may waste battery power in electric vehicles.
The new braking technology leverages stored electrical energy for both control and transmission, reducing reliance on pressurized fluids. This approach is seen as a significant advancement for EV energy efficiency, facilitating the transition from internal combustion engines to electric power alternatives. The UNECE’s updated provisions, expected to come into force in mid-2025, will be adopted as amendments to UN Regulations No. 13 and No. 13-H.
WP.29: A Global Vehicle Regulation Forum
The UNECE World Forum for Harmonization of Vehicle Regulations (WP.29) serves as a global regulatory platform within the UNECE Inland Transport Committee. WP.29 supports the safe, efficient introduction of vehicle innovations worldwide, addressing vehicle safety, environmental standards, and, increasingly, automated and connected technologies. GRVA, WP.29’s working party, is dedicated to developing regulations on vehicle dynamics, braking, steering, and cybersecurity.
The proposal from GRVA, adopted at their 19th session, is set for final review at the upcoming WP.29 meeting. If approved, it could herald significant safety and efficiency improvements in automotive technologies worldwide.
KEY NEWS 3/4 — US
FMVSS 228: New Rule Proposed for Pedestrian Head Protection in Vehicle Design
The National Highway Traffic Safety Administration (NHTSA) and the Department of Transportation (DOT) have proposed a new rule aimed at enhancing pedestrian safety through improved vehicle design, known as FMVSS 228 - Pedestrian Head Protection. This proposed regulation introduces test procedures that simulate head-to-hood impacts and establishes performance requirements to reduce the risk of serious head injuries for both children and adults involved in pedestrian crashes.
Grounded in Global Technical Regulation (GTR) No. 9 on Pedestrian Protection, the rule applies to vehicles in categories M (motor vehicles) and N (vehicles designed for the transport of goods). It focuses on protecting pedestrians—specifically children and adults—during side-impact collisions, which are among the most frequent and severe accident scenarios.
The key objectives of the proposed rule include ensuring that vehicle hoods are designed to effectively absorb and manage the energy generated from a pedestrian's head striking the vehicle. By simulating impact scenarios at a speed of 40 km/h (25 mph), the regulation aims to set head injury criteria (HIC) limits that will benefit pedestrians of all sizes.
Essential elements of the proposal include:
- Relevance to real-world scenarios involving pedestrian crashes at 40 km/h.
- A methodology for component testing of the hood using headforms that represent both child and adult pedestrians.
- Performance requirements based on HIC metrics as measured by the headforms.
- A hood mark-off procedure to define test areas, coupled with flexibility in performance requirements to address practical challenges.
The final rule is expected to take effect on September 1, two years after its official publication, which is yet to occur. This initiative represents a significant step toward improving pedestrian safety and reducing the incidence of head injuries in traffic collisions.
KEY NEWS 4/4 — AUS
Update on Australia's new Euro 6d equivalent Emission Standard
In a significant move towards cleaner transportation, Australia is set to adopt a Euro 6d equivalent emission standard, according to a recent update published by the International Council on Clean Transportation (ICCT). This new standard, slated to take effect on December 1, 2025, for new vehicle models, represents a major step in the country's efforts to reduce vehicle emissions and improve air quality.
The revised standard encompasses a comprehensive range of regulations, including test procedures, emission limits, real-world driving test requirements, OBD (On-Board Diagnostics) requirements, and energy consumption metrics. This holistic approach aims to ensure that vehicles meet stringent environmental standards not just in laboratory conditions, but also in real-world driving scenarios.
The economic impact of this regulatory change is expected to be substantial. The ICCT estimates that the total benefits will exceed 3.8 billion euros between 2026 and 2040. This projection underscores the long-term economic advantages of transitioning to cleaner vehicle technologies.
Complementing the new emission standard, Australia plans to implement improved fuel quality standards in 2025. This dual approach of enhancing both vehicle emission standards and fuel quality is expected to create a synergistic effect in reducing overall vehicle emissions.
Environmental experts view this move as a significant stride towards aligning Australia's automotive regulations with global best practices. The adoption of this standard is likely to accelerate the introduction of cleaner vehicle technologies in the Australian market, potentially leading to improved air quality in urban areas and reduced greenhouse gas emissions.
As the automotive industry gears up for this change, consumers can expect to see an influx of more environmentally friendly vehicle options in the coming years. The new standard is also anticipated to drive innovation in the automotive sector, pushing manufacturers to develop and implement more advanced emission control technologies.
With this initiative, Australia joins a growing list of countries taking decisive action to address vehicle emissions, demonstrating its commitment to environmental sustainability and public health.
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