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Volkswagen CEO says EU's tough CO2 targets could cost 1,00,000 jobs

Volkswagen chief executive Herbert Diess has warned that European Union's target to slash carbon dioxide (CO2) output by 40 per cent between 2020 and 2030 could lead to a loss of 1,00,000 jobs.

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Volkswagen CEO says EU's tough CO2 targets could cost 1,00,000 jobs

Volkswagen chief executive Herbert Diess has warned that European Union's target to slash carbon dioxide (CO2) output by 40 per cent between 2020 and 2030 could lead to a loss of 1,00,000 jobs.

If ministers aimed to slash carbon dioxide (CO2) output by 40 per cent between 2020 and 2030, "around a quarter of the jobs in our factories would have to go in the space of 10 years -- a total of 100,000 posts," Diess told daily Sueddeutsche Zeitung.

The governments in the European Union agreed to a 35-per cent cut in CO2 emissions by  2030. Germany, with its big auto sector, had backed an EU executive proposal for a 30 percent cut for fleets of new cars and vans by 2030, compared with 2021 levels.

Volkswagen CEO said the target for reducing greenhouse gas output that are too ambitious and could backfire with the loss of  jobs. Diess added that a faster reduction in CO2 output would be "barely manageable" as "by 2030 more than half of vehicles would have to be all-electric" with knock-on effects on jobs, he said.

"Such a drastic reduction means a painful revolution rather than a manageable transition," he warned, adding that "there would no longer be affordable small cars built in Germany".

European Union plans to cut carbon dioxide emissions from vehicles by 35 percent by 2030 pose a threat to Germany as a car-building nation, national auto industry association VDA said on Wednesday.

"It is more than regrettable that the majority of member nations did not find the strength to strike a balance between protecting jobs and protecting the climate," VDA president Bernard Mattes said in a statement.

"Job security is lessened and Germany as an industrial location has been weakened," added Mattes, who represents carmakers such as Volkswagen, BMW and Daimler

European Union nations, voicing concern over a U.N. report on global warming, agreed late on Tuesday to seek the 35 percent reduction in carbon dioxide emissions from passenger cars by 2030.

Several countries had sought a 40 percent reduction, in line with targets backed by EU lawmakers last week, but softened their position during late night negotiations in a step welcomed by the German government.

With Reuters Inputs

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