Is the 2035 European combustion engine ban on the brink?

The centre-right EPP group is calling for the partial withdrawal of the ban and a postponement of stricter emissions regulations ...

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By: Manuel Lehbrink

Published by: Brian Potter

Dec 11, 2024 at 5:57am ET

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After the car lobby and governments criticised the European Union for accelerating the end of the combustion engine, some politicians are now also against the ban planned for 2035. The European Parliament's largest political group, the European People's Party, is now putting pressure on Brussels leaders and Reuters has leaked a draft paper stating that the ban "should be reversed".

The EPP wants the internal combustion engine to remain in cars that run on alternative fuels beyond the middle of the next decade. In addition, the draft paper points out that manufacturers should be allowed to sell plug-in hybrids even after 2035. In view of dwindling demand, many car manufacturers operating in Europe have scaled back their ambitious targets for electric cars.

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The centre-right alliance is also calling for stricter emissions regulations, which are due to come into force next year, to be postponed until 2027 to protect companies from fines. As previously reported, the current fleet average of 115.1 g/km (based on the WLTP cycle) will fall by around 19 per cent to 93.6 g/km by 2025. For every gram above the fleet emissions target, manufacturers will have to pay a fine of 95 euros. And as the penalty is levied for each individual vehicle, the fine for a large corporation like Volkswagen quickly adds up to a considerable amount.

Renault CEO Luca de Meo estimates that the industry could pay up to 15 billion euros in fines next year alone. However, BMW CEO Oliver Zipse said that the stricter fleet emissions targets should not be delayed as manufacturers have had five years to prepare for the stricter regulations. It's a numbers game, as it basically comes down to whether a vehicle manufacturer sells enough e-models to offset the emissions caused by its combustion engines.

Groups in distress:

Volkswagen has already started cutting costs

Ford plans to cut around 800 jobs in the UK

Nissan cuts 9,000 jobs and sells Mitsubishi shares

Europe's automotive crisis has a domino effect on suppliers

Source: Reuters

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