A new, strict European framework is radically changing the automobile market with an emphasis on recycling, used cars, and vehicle inspections.
At a time of intense upheaval in Europe’s industrial and environmental policy, Brussels has chosen to take decisive action in one of the most critical and economically significant sectors of the single market: the automotive industry. Against the backdrop of the transition to a new model of sustainable development and growing pressure to reduce the environmental footprint, the new European framework for vehicle recycling and stricter inspection of used vehicles mark a profound political and economic shift, which is expected to affect not only the automotive industry and the supply chain, but also the very functioning of the market across the entire continent.
The European Union is steering the automotive sector toward a circular economy: to this end, the European Parliament today gave the green light to new rules covering both new and used cars. The baton, according to Topspeed.gr, is now being passed on to the Council of the EU for formal approval , and it will take 24 months for the new provisions to take effect.
What’s changing in new vehicles
The logic is simple: car manufacturers will have to design new vehicles in such a way that the greatest possible number of their components and parts can be easily removed.
In addition, plastic parts in vehicles should contain at least 15% recycled material within six years and 25% within ten years. At least 20% of the recycled plastic must come from materials recovered from end-of-life vehicles or from used parts (“closed-loop recycling” – closed loop).
At a later stage, the European Commission may also set targets for the use of recycled steel, aluminum, magnesium, and critical raw materials.
Three years after the rules take effect, the extended producer responsibility scheme will be activated, under which manufacturers will bear the cost of processing vehicles at the end of their life cycle.
Transfers of ownership of used vehicles: the future rules
In the event of the sale of a used company vehicle, companies must prove that the vehicle is not considered to be at the end of its life cycle or provide a valid technical inspection certificate.
And what will apply to transactions between private individuals? One of these two documents will be required only if the vehicle has been classified as a total economic loss or when the sale takes place online.
Combating illegal dismantling practices
To prevent illegal dismantling practices, the legislation will prohibit the export of vehicles that have been deemed unfit for use on public roads.
This measure, which aims to address so-called “ghost cars”, will take effect five years after the regulation enters into force.
To prevent illegal dismantling, the legislation will prohibit the export of vehicles that have been declared unfit for use on public roads. The measure against “ghost cars” will take effect five years after the regulation enters into force.
