Berliner Boersenzeitung - EU to fast-track review of 2035 combustion-engine ban

European Commission President Ursula von der Leyen hosted auto industry leaders for talks in Brussels, amid calls to relax emission targets set by the EU to tackle climate change.

At the meeting the commission pledged to pull forward a revision of the system that was initially scheduled for 2026.

"The review provided for by law will be brought forward as soon as possible to give manufacturers visibility," a spokesman for EU industry chief Stephane Sejourne said.

Von der Leyen promised to come up with a proposal in December, added William Todts, director of the clean transport advocacy group T&E, who was at the talks.

"Rigid CO2 regulation jeopardises competitiveness and thus the transformation of the entire industry. Our companies have made this clear once again today," said Hildegard Muller, president of Germany's automotive industry association VDA.

"The EU must now deliver -- and the solutions and options are all on the table. Further hesitation and procrastination cannot be tolerated."

- 'No longer feasible' -

Friday's meeting was the third under an EU initiative launched in January to help a sector that employs 13 million people and accounts for about seven percent of Europe's GDP.

Images released by the EU showed Renault CEO Francois Provost, Stellantis chairman John Elkann, BMW Group head Oliver Zipse and Mercedes-Benz chief Ola Kaellenius were among those in attendance.

The first gathering in January resulted in a reprieve for automakers, with the commission allowing them more time to meet the first emissions target under plans to phase out sales of new combustion-engine vehicles by 2035.

But companies have demanded more systemic changes.

In an August letter, carmakers and their suppliers lamented a series of challenges, including dependency on Asia for batteries, high manufacturing costs and US tariffs, which have been upped to 15 percent under a deal struck between Washington and Brussels.

Paired with an uneven distribution of charging infrastructure, they said those obstacles were holding back sales of EVs, which accounted for about 15 percent of new cars sold across Europe.

"We are being asked to transform with our hands tied behind our backs," Mercedes-Benz's Kaellenius and Matthias Zink, of the automotive parts supplier Schaeffler, wrote on behalf of their industries.

Describing the 2035 target as "no longer feasible", they called for incentives such as tax breaks to boost demand for EVs.

They also want more room for plug-in hybrids, highly efficient combustion-engine vehicles and other low- but not zero-emission vehicles as they face competition from Chinese rivals such as BYD.

- 'Big question' -

That is opposed by green groups and EV sector businesses, which argue staying the course is key to drive investments and innovation in the sector.

More than 150 of them urged von der Leyen in a letter to "stand firm".

Road transport accounts for about 20 percent of total planet-warming emissions in Europe, and 61 percent of those come from cars' exhaust pipes, according to the EU.

On Friday, von der Leyen strongly hinted that tweaks are on the cards.

"We will combine decarbonisation and technological neutrality," she wrote on X after the meeting, referring to carmakers' demand that not only EVs but other low-emission technologies be allowed on the market after 2035.

Todts said there was little doubt the commission would allow for more wiggle room. "The big question is, how much flexibility is provided," he told AFP.

During the talks the commission also promised to create a new regulatory category for small electric cars made in Europe, according to Sejourne's spokesman.

In a speech on Wednesday, von der Leyen had announced plans, with little details, for a "small affordable cars initiative" for Europe to "have its own E-car".

She also repeated a pledge to make available 1.8 billion euros ($2.1 billion) to boost battery production in the bloc.

(L.Kaufmann--BBZ)