The European Automobile Manufacturers' Association (ACEA) and the automotive suppliers' association CLEPA state that the European Union's targets to reduce CO2 emissions from new cars to zero by 2035 are no longer achievable.
In a letter addressed to European Commission President Ursula von der Leyen, the leaders of ACEA, including Ola Källenius (CEO of Mercedes-Benz), and CLEPA, represented by Matthias Zink (Schaeffler), warn that the industry is facing major challenges: increased dependence on Asia for batteries, insufficient charging infrastructure, rising production costs and U.S. tariffs on European EVs.
Decisive meeting in September
Ursula von der Leyen will meet with key leaders of the automotive sector on September 12th to discuss the future of the industry, which has been weakened by Chinese competition in the EV sector and by U.S. trade barriers. The industry is asking Brussels to review its interim targets, notably the 55-percent reduction in CO2 emissions for cars and 50-percent cut for trucks by 2030, followed by a complete ban on internal combustion engines in 2035.
“Achieving the current targets for 2030 and 2035 is simply no longer realistic in the current context,” the signatories wrote.
Towards a more flexible energy transition
The manufacturers reiterate that they support the goal of carbon neutrality by 2050 but are asking for more flexibility in the proposed solutions. They advocate for a technology mix that includes:
- • battery electric vehicles (BEVs),
- • plug-in hybrids,
- • range extenders,
- • highly efficient internal combustion engines,
- • hydrogen and decarbonized fuels.
In their view, a strategy focused exclusively on all-electric vehicles could weaken the European economy and increase dependence on Asia.
A sector under intense pressure
Despite the growing number of electric models on the market, they only account for 15 percent of sales in Europe, with adoption varying greatly between countries. Manufacturers still make most of their profits from high-end SUVs and gas-engine cars, and that obviously complicates a rapid shift to electric.
For suppliers, the situation is just as tense: Continental has announced job cuts, while Valeo has issued a warning about its margins, illustrating the growing difficulties in the supply chain.
Political context and outlook
Last March, the European Commission had already relaxed the deadlines for achieving certain targets set for 2025. Several members of von der Leyen's centrist group are now calling for the 2035 ban on internal combustion engines to be abandoned altogether. This new challenge highlights the tension between Europe's climate ambitions and the economic reality of its automotive sector, a pillar of the continent's industry.