Carmakers in the EU Express Infeasibility of Internal Combustion Engine Ban
Europe's Planned Ban on Combustion Engines Under Scrutiny
The automotive industry is facing a significant challenge as the European Union (EU) moves forward with its plans to ban fossil fuel-powered vehicles by 2035. This decision, which has been a subject of debate for several years, was narrowly approved in Brussels and is now causing a stir in the industry.
The majority of carmakers' earnings come from combustion-engine models, particularly high-margin SUVs and premium cars. However, the EU policymakers continue to defend the ban as essential to meeting climate goals. The intervention indicates growing tension between Europe's climate ambitions and the economic strains in its manufacturing sector, specifically the auto industry.
Carmakers argue that the EU's planned ban on combustion engines is no longer realistic. They assert that meeting CO2 targets for 2030 and 2035 is no longer feasible in today's world. Ola Källenius, President of the European Automobile Manufacturers' Association (ACEA) and CEO of Mercedes-Benz Group AG, and Matthias Zink, a senior executive at Schaeffler AG, wrote a letter to the European Commission urging a delay in the planned ban. They argued that more time is needed to ensure a fair transition for the industry and consumers while developing necessary infrastructure and technology.
China's dominance of the electric-vehicle supply chain and new U.S. trade barriers are cited as fresh hurdles by the carmakers. Suppliers in the automotive industry are under pressure; companies such as Continental AG are cutting jobs, and Valeo SE is warning on profitability due to cooling EV demand and rising financing costs. Analysts expect more restructuring across the supply chain due to the squeeze on suppliers.
However, environmental groups argue that industry warnings about the ban are exaggerated. They cite steady growth in EV sales and a wave of new European battery projects as evidence that the transition to electric vehicles is on track. Battery-powered vehicles make up only about 15% of sales, with uneven adoption across the EU.
France and the Netherlands have already aligned their national policies with the EU's planned ban. The steady growth in EV sales and the wave of new European battery projects are points raised by environmental groups in response to industry concerns about the EU's planned ban. The leaders of the industry's main lobby groups have urged European Commission President Ursula von der Leyen to revisit plans to phase out fossil fuel-powered vehicles by the mid-2030s.
As the debate continues, it is clear that Europe's transformation plan for the auto industry must consider current industrial and geopolitical realities. The top photo features exhaust fumes from a car, photographed by Chris Ratcliffe/Bloomberg, serving as a stark reminder of the urgency to address climate change and the challenges that lie ahead in the transition to electric vehicles.
Read also:
- More than half of British homes adhere to insulation standards established during the 1970s.
- While Éowyn's storm caused a massive €301 million in damages, fossil fuels maintain their position as the leading power source.
- Transition in Energy: Merz Administration Plans Enactment of Heating Revolution from 2026
- German Obsession with Luxury Vehicles Thriving Amid Traffic Congestion
