As of now, the European Commission does not intend to reconsider its regulation that will ban the sale of new combustion and hybrid cars in Europe from January 1, 2035. However, a review clause is scheduled to be examined in 2026. But, faced with the growing difficulties encountered by European car manufacturers, due to the stagnant sales of electric cars, and the CAFE 2025 (average CO2 emissions per year across the entire production), the President of the European Commission, Ursula von der Leyen, will implement an action plan to support the European automotive industry. This same action plan will be unveiled in detail on March 5.
While waiting for March 5 and the revelation of the action plan promised by Ursula von der Leyen, she will continue to engage with the various leaders of European automotive groups and manufacturers, such as Renault Group, Stellantis, Mercedes-Benz Group, and Volkswagen AG, to name a few. Faced with a CAFE 2025 set at 81 g/km of average CO2 emissions, and a 5.9% drop in electric car sales (for the EU – source: ACEA), the entire European automotive sector is suffering. The best and saddest example is represented by the recent social plan launched in Germany by Volkswagen AG.
The recent return of Donald Trump as President of the United States is also to be taken into account, as Donald Trump could tax electric cars from Europe on the other side of the Atlantic. In this context, the President of the European Commission, Ursula von der Leyen, has announced:
“The European automotive industry is at a turning point and we are aware of the challenges it must face. That is why we are acting quickly to address them. The fundamental question we must answer together is what we still lack to unleash the innovative power of our companies and ensure a strong and sustainable automotive sector. Today marks the beginning of a dialogue that will help us face the changes to come. The result of this dialogue will be a comprehensive action plan that we will present on March 5. This action plan will chart a clear path that will allow our industry to prosper in Europe and be competitive on the global stage.”
Finally, what areas of reflection will European car manufacturers highlight to negotiate with Ursula von der Leyen the terms of the action plan in question? Most likely the postponement of CAFE 2025 or its increase in terms of CO2 emissions. As for the “fateful date” set for January 1, 2035, regarding the ban on the sale of new combustion and hybrid cars in Europe, it could also be discussed.
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Photos: Volkswagen