The letter to the European Commission by Daimler Truck, Volvo Group, TRATON, DAF Trucks, Iveco, Ford Otosan and industry body European Automobile Manufacturers’ Association complains that a “constrained” uptake of electric trucks is because of the “slow rollout” of charging facilities. But the letter ignores the manufacturers’ refusal to scale up production of affordable truck models which meet the needs of fleets. 

Under the current EU standards, truckmakers must cut CO₂ emissions from new heavy-duty vehicles by 45% by 2030 and 90% by 2040, with a formal review already scheduled for 2027. Experts warn that reopening the rules now would ignore concerns recently raised by investors that European manufacturers risk ceding market share to international competitors while also overlooking growing demand from European fleets struggling with spiking fuel costs.

At recent AGMs, both Volvo Group and Daimler Truck faced shareholder pressure over climate lobbying and concerns about long-term competitiveness.

  • A Volvo shareholder resolution by Danish public retirement fund Akademiker Pension outlined concerns over “governance, credibility and long term value creation”. The resolution was supported by Nordic asset manager Lannebo, Danish retirement fund Sampension and the Church of England Pensions Board.
  • At Daimler’s AGM, Ethical Shareholders Association Germany filed a countermotion questioning “whether the current strategic approach is sufficient to ensure the long-term competitiveness of the enterprise” dismissed by Daimler’s executive leadership team, supervisory board chairman Joe Kaeser said Daimler Truck is undermining CO₂ standards is “not justified and simply untrue,” and “If you know someone who is doing that, tell us.” ACEA is chaired by Daimler’s CEO Karin Rådström. 

Low-cost rivals including Chinese manufacturers like BYD and Windrose are set to sell electric trucks up to 36% cheaper than European manufacturers. Under current price points manufacturers are keeping over half of European operators priced out of buying an electric truck. 

Research in the U.S. shows electric truck models by Daimler Truck, Volvo Group and Paccar are hundreds of thousands of dollars more expensive than new entrant Tesla Semi, and with a far lower range and charging speed.

Despite this growing competition, legacy truckmakers continue to underinvest in electric truck deployment while prioritising shareholder payouts. Between 2019 and 2024, Europe’s five largest truck manufacturers generated €57 billion in net profits and returned 66% to shareholders, with payouts exceeding R&D spending for the first time since 2019.

Investment in battery-electric technologies remains strikingly low. Last year, Volvo Group reduced its investments towards “low- and zero-emission projects” and has paid out roughly three times more to shareholders than it invested in zero-emission technologies. 

Daimler Truck is spending as much on shareholder payouts as on R&D, while scaling back investments in battery technologies despite Daimler’s own CEO and board member of ACEA’s board stating “scale is key to winning in the technological transformation of our industry.”

Manufacturers have already secured major concessions from EU policymakers. Last year Daimler Truck, Volvo Group and Traton successfully lobbied for weakened compliance rules under the 2030 CO₂ standards, with analysts estimating the changes could cut electric truck sales in Europe by up to 27% by 2030.

Vehicle affordability, not a lack of enabling conditions, remains the primary barrier to adoption, noting that the EU has already committed almost €450 million for truck charging infrastructure and that nearly half of EU road freight activity now takes place in countries with reduced tolls for zero-emission trucks.

Experts warn that further weakening the framework risks repeating mistakes seen in the passenger car market, where delayed industrial transition contributed to major losses in competitiveness. They say Europe must stay on track to maintain the long-term CO2 targets (a 45% reduction by 2030 and 90% by 2040) and keep the 2027 review in place. 

“By prioritising short-term payouts over the future of freight, European truckmakers are steering straight into a competitive trap. When Volvo and Daimler combined return nearly €5 billion to shareholders in a single year, and allowing dividends and buybacks to outpace their own R&D spending, it isn’t a victory for investors – it’s a red flag for long-term competitiveness. Reopening EU CO2 standards now only signals that legacy truckmakers are unready to compete, effectively rolling out the red carpet for low-cost international rivals who are already undercutting them by up to 36%,” said Ben Scott, Head of Energy Demand, Carbon Tracker

Analysis shows that, already under current legislation, the share of zero-emission trucks in new sales by 2030 could fall from around 35% to just 18–28%, amounting to roughly 200,000 fewer zero-emission vehicles over the next decade. This would not only slow the urgently needed scale-up of e-trucks, but could also lead to millions of tonnes of additional CO₂ emissions. While China is rapidly expanding its electric truck market, Europe risks losing market share, industrial leadership, and jobs. The stop-and-go approach seen in the CO₂ rules for cars must not be repeated in the truck sector,” said Merlin Jonack, Project Lead Heavy-Duty Vehicle Decarbonisation, NABU 

 

ACEA’s call for an early review of the CO₂ standards comes at a critical moment for the transition to zero-emission trucks. While it is important to assess progress, maintaining strong and predictable targets is key to providing investment certainty, scaling up production, and reducing costs for operators. Weakening the framework now risks slowing down the transition and could ultimately affect Europe’s long-term competitiveness,” said Maren Hemsett, senior advisor, the Norwegian EV Association

“Last year, carmakers, alongside ACEA, successfully pushed for an early review of the EU’s car and van emissions standards, allowing them to secure significant concessions to weaken the policy during its review. Representing truck manufacturers, ACEA now appears to be using a similar strategy to target emissions standards for heavy-duty vehicles, posing a serious threat to the ambition of this policy and the broader electric vehicle transition,” said Tom Magowan, Analyst, InfluenceMap