The European Union’s imposed deadline on definitively phasing out combustion engine cars by 2035 is under increasing pressure. Last week, German Chancellor Friedrich Merz confirmed that he would formally ask the European Commission (EC) to review that deadline for banning internal combustion engines in new vehicles sold. The German government believes the current deadline does not take industrial realities into account and that an extension will be necessary to avoid an economic shock.
In his letter addressed to EC president Ursula von der Leyen, Merz advocates for the idea of “technological neutrality”. In other words, not imposing only all-electric vehicles, but allowing the continuation for a time of plug-in hybrids, highly efficient thermal engines and emerging technologies like synthetic fuels.
Merz argues the charging infrastructure is still insufficient in several regions of Europe, and a too-rapid transition could harm the continent's competitiveness versus Chinese manufacturers.
Danger for the Industry
This request also reflects concerns expressed by several European automotive giants, who fear a massive loss of jobs if the ICE sector were to shut down abruptly. Some executives even evoke a risk of industrial collapse if the 2035 deadline remains unchanged. Pressure on Brussels to re-evaluate the transition strategy is thus strong.
That pressure comes as several German manufacturers are experiencing difficulties. Volkswagen, for example, has had to plan to close factories and cut thousands of jobs worldwide, but especially in its country of origin.
The European Commission itself is not completely ruling out a revision. Vice-President Stéphane Séjourné raised the possibility of “activating all levers” to support the industry, suggesting that certain exceptions could be considered. An official announcement is expected on December 10th.
Echoes in Canada?
The debate on the Old Continent could resonate beyond European borders, including in Canada. Ottawa has adopted the objective of banning the sale of new combustion vehicles in 2035, but the final version of the federal regulation has not yet been officially published. If Europe, which was until now the global standard for the zero-emission timeline, softens its position, Canada might be tempted to review its own approach, especially following recent decisions favourable to Alberta and its oil sector.
A deadline easing in Europe would provide additional arguments to provinces and manufacturers who judge the transition too fast or poorly synchronized with North American production capacities. Conversely, a strict maintenance of the European date would increase pressure on Ottawa to maintain its own initial schedule.