Source: BILANZ Image credit: BILANZ, Andrea Zahler

The LEVA-EU member was interviewed by BILANZ about the big hurdles and lack of subsidy support that microcar and quadricycle companies are experiencing in Europe, and about its legal plans to tackle them.

In its article, the Swiss business publication questions how the European Commission is aiming to encourage more support for climate action, by providing generous assistance to large electric vehicle companies, while not supporting companies producing smaller and lighter, and therefore more sustainable models.

It recently created the new vehicle category, M1e, which encourages and rewards electric car manufacturers to innovate smaller models, which are still considerably large at a length of 4.2 meters.

“That’s not a small car, that’s an SUV,” says Co-Founder of Microlino, Merlin Ouboter, who questions why the European government is supporting vehicles of this larger-sized vehicle category.

The L7e vehicle category, which includes smaller vehicles such as quadricycles and microcars like the Microlino, receives relatively little government support, despite them offering significant benefits for advancing zero-emission and climate goals. Their lightweight, space-efficient designs also help address the growing problem of congestion in city centres.

The benefit gap for M1e and L7e manufacturers

Manufacturers of the M1e category receive a regulatory boost by receiving higher emission credits for producing their vehicles in the EU, which helps them comply with EU-mandated targets more easily, therefore decreasing the risk of fines. The European Commission has also frozen standards for 10 years, giving companies long-term investment certainty as it helps them to keep prices below €20,000.

The inconsistency is evident, with L7e micromobility companies producing vehicles emitting fewer emissions than the above category, yet are not given access to the awards and benefits of doing so, receiving no premiums, support or certificates.

Microlino fighting against the hurdles

Microlino’s Wim Outboter, along with his sons Merlin and Oliver, is legally fighting against the injustice with lawyer Cordelia Bähr, who has taken Swiss “climate seniors” to the European Court of Human Rights (ECHR), and has been previously included in Time Magazine’s list of the world’s 100 most influential people.

“We’re being discriminated against,” states Wim Ouboter.

He emphasises that many average commuting distances and speeds can be done with smaller vehicles like microcars.

“There’s no need for an SUV with just one person.” Ouboter adds, as he notes that he has only witnessed head-shaking from government offices, after having had discussions with Member of Swiss Federal Council, Albert Rösti and appropriate federal officials three times.

An example of the injustice has been highlighted when reviewing clean-air business, with a well-known global electric car manufacturer reportedly having generated $11 billion from selling CO₂ certificates, which equates to approximately a third of the company’s total profits.

Lighter electric vehicle companies like Microlino can not receive this type of access to markets, as their products do not come under any category of passenger car.

Ouboter explains that if manufacturers of smaller vehicles received the same rights as producers of larger vehicles, prices could decrease and increase competitiveness. He explains that in the current scenario, innovation for the light electric vehicle (LEV) sector is not being supported, as it faces numerous obstacles from the European Commission.

Obstacles in Europe have encouraged production to move to China

The European Commission’s stance on supporting LEVs has come at a high price for Microlino. Although Italy has the capabilities for producing microcars, it doesn’t have the political backbone for genuine support.

Ouboter notes that moving its production to China has been very positive for the company, as he highlights that there will be a second production line for a new model, which it is aiming to decrease the price for from €13,000 to €12,000.

Conclusion

To summarise, the current inconsistency of benefits that M1e and L7e vehicle manufacturers receive questions the credibility of Europe’s climate policy. It has led to questions about whether the European Commission’s Green Deal is a genuine promise to combat climate change, or if it’s more of a safety net for the automotive industry.