Czech Republic Joining Italy to Fight Carmakers' CO2 Fines

Skoda Auto cars are seen at the production line as the carmaker launches production of MEB battery systems in Mlada Boleslav, Czech Republic, May 17, 2022. REUTERS/David W Cerny/File Photo
Skoda Auto cars are seen at the production line as the carmaker launches production of MEB battery systems in Mlada Boleslav, Czech Republic, May 17, 2022. REUTERS/David W Cerny/File Photo
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Czech Republic Joining Italy to Fight Carmakers' CO2 Fines

Skoda Auto cars are seen at the production line as the carmaker launches production of MEB battery systems in Mlada Boleslav, Czech Republic, May 17, 2022. REUTERS/David W Cerny/File Photo
Skoda Auto cars are seen at the production line as the carmaker launches production of MEB battery systems in Mlada Boleslav, Czech Republic, May 17, 2022. REUTERS/David W Cerny/File Photo

The Czech Republic will join Italy in seeking to prevent carmakers from facing heavy penalties from next year when tougher CO2 emission rules take effect in the European Union, Czech Transport Minister Martin Kupka said on Sunday.

Kupka said carmakers will face problems meeting new targets due to falling demand for electric vehicles in Europe, adding that the two countries had agreed on Friday to present their joint stance this week when EU leaders meet in Budapest.

Starting in 2025, the EU will lower a cap on average emissions from new vehicle sales to 94 grams/km from 116g/km. Exceeding that cap could lead to fines of 95 euros ($103) per excess CO2 g/km multiplied by the number of vehicles sold.

Carmakers face trouble adjusting their ranges to meet those targets, Kupka said, Reuters reported.

"They cannot do it because interest in electric cars is falling in all of Europe," Kupka told a Sunday debate show on broadcaster CNN Prima News. He said carmakers would lack money to finance research and development if they are forced to pay fines.

The Czech Republic is among a group of EU countries pushing back against the bloc's so-called Green Deal to tackle climate change and curb pollution. The tougher limits next year are a step towards plans to ban sales of new combustion engine vehicles in 2035.

The car industry contributes around 9% of GDP in the Czech Republic, a country of 10.9 million which made 1.4 million cars in 2023, making it one of Europe's biggest per-capita producers.

Three carmakers operate in the country - Volkswagen's Skoda Auto, Hyundai Motor Co and Toyota Motor Corp.



Hyundai Motor America Is Recalling 42,465 US Vehicles

FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)
FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)
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Hyundai Motor America Is Recalling 42,465 US Vehicles

FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)
FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)

South Korean carmaker Hyundai Motor is recalling about 42,465 vehicles in the US due to improperly routed wiring that may increase the risk of a crash, the US National Highway Traffic Safety Administration said on Saturday.
The recall includes certain 2025 Tucson and Santa Cruz vehicles, according to Reuters.
The US auto safety regulator said that a vehicle transmission that could move out of "Park" mode without the driver pressing the brake pedal could cause the vehicle to roll away, raising the risk of a crash.
On Friday, the automaker also recalled over 145,000 electric vehicles in the US due to a loss of drive power.