Revisiting Europe's Ban on New Gasoline Vehicles

The prohibition on new diesel and gasoline cars and vans within Europe, set for implementation in 2035, has resurfaced as a significant topic of discussion.

First introduced in 2023 as a pivotal initiative by the European Union, this controversial regulation has been a focal point at the IAA Mobility auto exhibition in Munich over recent days.

On Monday, over 150 executives from the European electric vehicle sector issued an open letter urging the European Commission to steadfastly uphold the 2035 zero-emission objective for cars and vans and to bolster this goal with more decisive measures.

The letter, endorsed by prominent EV manufacturers like Volvo alongside suppliers and battery producers, emphasized that setting this target has already provoked vast investments amounting to hundreds of billions of euros.

The letter warned that any retreat from this target could damage investor confidence and place Europe at a disadvantage compared to international rivals.

Industry Response

This collective appeal followed a recent letter from both the European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA), directed at Ursula von der Leyen, President of the European Commission.

The associations argued the 2035 emissions targets are now unachievable. The letter, which had the backing of Mercedes's Ola Källenius and Matthias Zink, stressed the need to recalibrate the EU's emissions strategy to protect industry competitiveness, social unity, and supply chain durability.

Representing 16 leading carmakers like Mercedes and others, ACEA and CLEPA underscored the necessity of balancing regulatory targets with industrial feasibility.

German Chancellor Friedrich Merz also contributed to the conversation at the IAA Mobility conference, criticizing the idea of politically dictated technology choices as economically misguided and ineffective for achieving mutual objectives.

Critical Discussions Ahead

With a meeting between top automaker executives and the EU's von der Leyen scheduled, anticipated discussions will delve into potential adjustments to the 2035 vehicle regulation.

These deliberations occur against a backdrop of various challenges faced by Europe's auto industry, including cost pressures and competitive strains.

According to Rico Luman of Dutch bank ING, the renewed focus on the EU's automotive policy underscores the sector's vital need to navigate these ongoing challenges without compromising established commitments.

While Transport & Environment, a campaign group, has urged the EU to uphold the 2035 emissions goals in forthcoming discussions, the European Commission has refrained from public commentary about these impending talks.