It is an anti-business overregulation of the automotive industry. A frontal assault on the automotive industry. With its decision to enact the CO2 Ordinance retroactively to 1 January 2025, the Federal Council is accepting major economic damage. This means that the regulations for new vehicles, which are significantly stricter than in the rest of Europe despite numerous warnings from auto-schweiz, will also be applied to contracts that have already been signed and to vehicle deliveries that have already taken place.
auto-schweiz: The Federal Council is committing a legal violation
A legal opinion on the matter from Professor of Commercial Law Peter Hettich of the University of St. Gallen had identified massive legal violations in the event of a retroactive enactment. Only in a few points of the ordinance did the Federal Council address the demands of auto-schweiz and all business and road traffic associations in the consultation procedure, such as target credits for exceeding certain market shares of plug-in vehicles. The consequences for Switzerland’s third-largest import industry are high penalties in the three-digit million range, which will lead to a massive reduction in jobs. The damage to the automotive industry is considerable, as is the collateral damage to the economy as a whole. auto-schweiz is now considering legal action against the anti-business CO2 Ordinance.
Regulations enacted with retrospective effect
“Since no referendum was held, there is no legal basis for either the amendment of the CO2 Act or the amendments to the CO2 Ordinance,” states Prof. Dr. Peter Hettich, Professor of Public Commercial Law with a focus on Construction, Planning and Environmental Law at the University of St. Gallen (HSG), in his expert opinion. The regulations that the Federal Council has now enacted with retrospective effect also go against the will of parliament. The CO2 Act states in several places that the Federal Council is to base the regulations for new vehicles and their detailed provisions on European standards.
auto-schweiz: Federal Council ignores guidelines
This requirement was ignored in several places when the associated ordinance was drafted. For example, in the case of target credits for high market shares of electric vehicles and plug-in hybrids: if a manufacturer exceeds these target values, they receive a credit towards their fleet target. The regulation for passenger cars that has now been adopted only covers the period up to and including 2027, while the EU offers corresponding annual sales incentives for electric drives until 2029.
auto-schweiz expects the product range to become significantly more expensive
Likewise, special vehicle categories in freight transport have not been excluded from the CO2 regulation, and thus the weak market demand for electric delivery vans is deliberately ignored. A massive increase in the price of delivery vans will therefore impact tradespeople, transport companies and many other business owners, while the expansion of the ecosystem for electric mobility is not progressing. It is also regrettable that not all CO2-reducing activities are supported by the ordinance that has now been adopted. The potential of biogenic and synthetic fuels is not being fully exploited.
Federal Council and administration cannot change the rules retrospectively
“Professor Hettich’s legal opinion clearly shows that the Federal Council and the administration cannot simply change the rules retrospectively,” said auto-schweiz President Peter Grünenfelder in his statement on the anti-business overregulation of the automotive industry. “Furthermore, the provisions of the CO2 Ordinance go well beyond international standards, which makes everything even more expensive. If the Swiss population does not buy enough electric vehicles, there is a risk of fines in the three-digit million range for 2025 alone. Such a policy will become existentially threatening for Swiss automotive companies because it will make it virtually impossible for the state to conduct profitable business.” The competitiveness of the entire Swiss automotive industry, with its approximately 100,000 jobs and more than 4,000 companies, will be severely restricted. “We can expect thousands of job cuts, a thinning out of the dealer network and the closure of garage businesses,” says Peter Grünenfelder.
Costs are passed on in the selling price
“Many people don’t seem to realize that in the end it’s not the vehicle importers or the automotive industry that are supposed to pay the CO2 sanctions, but rather that the rising costs will be passed on in the sales price and the economy as a whole will feel the effect of this increase,” explains Thomas Rücker, director of auto-schweiz.
“Among other things, the implementing provisions envisaged to date show a tightening compared to the European requirements. This form of overzealousness leads to unnecessary economic damage and does not correspond to the intention of the legislator. This approach will significantly weaken the Swiss economy. Despite the undisputed CO2 law, the implementing provisions have been designed in such a way that additional market distortions will occur. In our opinion, the CO2 Ordinance that has now been enacted represents a missed opportunity to find marketable regulatory solutions for consumers and the economy. The pressure on the automotive industry – in particular on importers and garages – will increase dramatically as a result, which will have a significant impact on the companies’ added value.” The decision is an anti-business over-regulation of the automotive industry.
auto-schweiz is the Association of Swiss Automobile Importers. Our members distribute cars and commercial vehicles (lightweight up to 3.5 tons and heavyweight over 3.5 tons of total weight), buses and coaches worth over 10 billion Swiss francs per year through approximately 4,000 brand dealers in Switzerland and the Principality of Liechtenstein. auto-schweiz provides services for its members and the public, including in the areas of transport and environmental policy, statistics and motor vehicle technology. Politically, auto-schweiz advocates for the motor vehicle industry, motorized private transport and motorists. More at: www.auto.swiss.
