Published by Global Banking & Finance Review®
Posted on September 7, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleEuropean EV leaders urge the EU to uphold 2035 CO2 targets, warning delays could harm the market and investor confidence.
(Reuters) -Over 150 bosses from Europe's electric car industry signed a letter on Monday urging the European Union to stick to its 2035 zero emission target for cars and vans.
The electric car industry's signatories, including Volvo Cars and Polestar, warned against any delays to the targets, saying in the letter that would mean stalling Europe's EV market, handing an advantage to global competitors and eroding investor confidence.
It follows a separate letter at the end of August from heads of the European automobile manufacturers' and automotive suppliers' associations to European Commission President Ursula von der Leyen stressing that a 100% reduction for cars by 2035 was no longer feasible.
That letter included the signature of Mercedes-Benz CEO Ola Kaellenius.
On September 12, von der Leyen is set to discuss the future of the automotive sector automotive with industry players, which are facing the dual threat of increased competition from Chinese rivals and U.S. tariffs.
Weakening targets now would send a signal that Europe can be talked out of its own commitments, Michael Lohscheller, CEO of Polestar, said in a statement.
"That would not only harm the climate. It would harm Europe's ability to compete," he said.
Michiel Langzaal, chief executive of EU charging company Fastned, cited the clarity the 2035 target had provided and investments already made in areas like charging infrastructure and software development.
"Those investments can only create returns if we get to this goal," he said.
All European carmakers except Mercedes-Benz were on track to comply to CO₂ regulation for cars and vans over 2025-2027, according to a report on Monday from transport research and campaign group T&E.
Mercedes, it said, would need to pool its emissions with Volvo Cars and Polestar to avoid fines for missing the targets.
(Reporting by Marleen Kaesebier and Nick Carey; Editing by Matt Scuffham)
CO2 emission refers to the release of carbon dioxide into the atmosphere, primarily from burning fossil fuels. It is a significant contributor to climate change.
Electric vehicles (EVs) are cars that are powered by electric motors instead of internal combustion engines. They are known for being more environmentally friendly.
Investor confidence is the degree of optimism that investors feel about the overall state of the financial markets and the economy, influencing their investment decisions.
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