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EU auto groups press for change to 'no longer feasible' car CO2 emission targets
Published by Global Banking and Finance Review
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
EU auto industry leaders urge a reevaluation of CO2 targets, citing feasibility issues due to global competition and infrastructure challenges.
BRUSSELS (Reuters) -European Union targets to cut CO2 emissions from vehicles, including a 100% reduction for cars by 2035, are no longer feasible, the heads of the European automobile manufacturers' and automotive suppliers' associations said on Wednesday.
European Commission President Ursula von der Leyen is set to host automotive sector executives on September 12 to discuss the future of the sector, which is facing twin threats of Chinese competition in electric vehicles and U.S. tariffs.
In a letter to von der Leyen, Mercedes-Benz CEO Ola Kaellenius and Matthias Zink, CEO of powertrain and chassis at Schaeffler AG, said they were committed to achieving the EU's net zero goal in 2050.
However, they said EU manufacturers now faced near-total dependency on Asia for batteries, as well as uneven charging infrastructure, higher manufacturing costs and U.S. tariffs.
The bloc needed to go beyond new-vehicle targets, they argued, such as 55% CO2 emissions reductions from 2021 levels for cars and 50% for vans by 2030 and of 100% for both by 2035.
Electric cars have a market share of around 15% of new EU cars, with vans at 9%.
"Meeting the rigid car and van CO2 targets for 2030 and 2035 is, in today’s world, simply no longer feasible," they wrote.
Legal mandates and penalties would not drive the transition, they wrote.
"EVs will lead the charge, but there must also be space for (plug-in) hybrids, range extenders, highly efficient internal-combustion engine vehicles, hydrogen and decarbonised fuels," the letter said.
CO2 regulation for heavy-duty trucks and buses must also be reviewed, the two association chiefs said.
In March, the Commission agreed to give automakers extra time to meet CO2 emission reduction targets initially set for 2025. Members of von der Leyen's centre-right grouping have also called for the EU to withdraw its 2035 ban on combustion engines.
(Reporting by Philip Blenkinsop in BrusselsEditing by Matthew Lewis)
The EU has set targets for a 55% reduction in CO2 emissions from 2021 levels for cars and 50% for vans by 2030, with a goal of 100% reduction for both by 2035.
Manufacturers cite dependency on Asia for batteries, uneven charging infrastructure, higher manufacturing costs, and U.S. tariffs as significant challenges that make meeting the targets unfeasible.
Manufacturers suggest that while electric vehicles will lead the charge, there should also be space for plug-in hybrids, range extenders, highly efficient internal-combustion engine vehicles, hydrogen, and decarbonized fuels.
In March, the European Commission agreed to give automakers extra time to meet CO2 emission reduction targets that were initially set for 2025.
Mercedes-Benz CEO Ola Kaellenius and Matthias Zink, CEO of powertrain and chassis at Schaeffler AG, are among the key figures expressing concerns in a letter to European Commission President Ursula von der Leyen.
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