Call for Flexibility: Automakers and Nations Urge EU to Reconsider 2035 Combustion Engine Ban

European Commission Developing Relief Package for Automotive Industry Amidst Challenges

The European Commission is working on a relief package for the automotive industry as electric vehicle (EV) sales growth slows down, Chinese competition increases, and concerns about widespread job losses arise.

Numerous automakers and nations are advocating for modifications to the bloc’s effective ban on new vehicles with internal combustion engines starting from 2035, although there are dissenting voices.

A letter from six member countries (Bulgaria, Czechia, Hungary, Italy, Poland, and Slovakia) urges the European Commission to allow hybrids and vehicles with other technologies that can help reduce emissions to be sold after 2035.

Additionally, the letter requests that low-carbon and renewable fuels be included in the bloc’s plans to reduce carbon emissions in the transportation sector.

Germany’s chancellor, Friedrich Merz, is pushing for plug-in hybrid and range-extender EVs, as well as highly efficient combustion engines, to be allowed after 2035. Italy is advocating for cars using biofuels to be exempt from the 2035 ban.

BMW is also calling for plug-in hybrids and “sustainable” fuels to be permitted post-2035, and for the EU’s regulations to consider life-cycle emissions rather than just tailpipe emissions.

On the other hand, environmental groups oppose altering the effective EV mandate, warning that exempting biofuels could lead to an increase in CO2 emissions and have unintended consequences like deforestation.

France is advocating for support for local battery production and proposing the mandatory electrification of corporate fleets with EU-made vehicles.

Polestar CEO Michael Lohscheller emphasized the importance of maintaining the 2035 target, stating that Europe must lead the transformation to avoid other countries taking over.

Volvo’s Håkan Samuelsson drew parallels between the current challenges and the resistance against catalytic converters and seatbelts in the past.

The European Commission is set to unveil its proposed relief package on December 10, addressing issues such as incentives for greener corporate fleets, promoting EU-made components in battery packs, and adjusting interim CO2 targets.

Furthermore, a new ‘E-car’ category for European-made electric city cars is expected to be introduced as part of the relief package.

Approval from the European Council and the EU Parliament will be required for the relief package, a process that may take several months.