German Manager Magazine: Combustion engine ban: Moving away from the combustion engine ban for vehicles from 2035004600

Now it’s official: The absolute end to combustion cars planned in the EU from 2035 is off the table. The EU Commission adjusted its emissions guidelines for the automotive industry on Tuesday. According to the new regulations, CO₂ fleet emissions only have to fall by 90 percent from 2035 instead of 100 percent. This means that new hybrid or gasoline cars or electric vehicles with a gasoline generator on board, so-called range extenders, can still be registered afterwards. To do this, car manufacturers must make up for these emissions by using green steel from the EU or by using CO2-neutral fuels, so-called e-fuels.

The EU Commission is reacting to massive pressure from the automotive industry and member states such as Germany or Italy. Chancellor Friedrich Merz Commission President Ursula von der Leyen recently called on the government to give in in a letter. If the member states and the EU Parliament agree to the EU Commission’s proposal, it would be the most far-reaching reversal in climate policy in the past five years.

At the same time, however, electric cars should continue to be promoted. On the one hand, the EU Commission is proposing to particularly favor a new category of small electric cars from Europe when calculating fleet limits. On the other hand, companies and rental car companies should receive guidelines for the use of electric cars. Ultimately, the development of battery factories and the associated raw material chain in Europe should be promoted.

The auto industry was in favor of relief made strong, because the demand for electric cars is not increasing as much as originally assumed. However, the change that has now been made does not seem to go far enough for the industry. According to the AFP news agency, the Association of the German Automotive Industry (VDA) sharply criticized the plans. The technological openness “correctly recognized by the EU must be more than just lip service,” explained VDA President Hildegard Müller (58) on Tuesday in Berlin. “Unfortunately that is not the case here.”

Critics warn against relying too much on combustion engines. If companies slow down the development of electric cars, it is to be feared that the European car industry will fall even further behind in the race with competition from China.

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