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    Home > Finance > Car industry bets that EU will delay announcement on combustion engine cut-off, sources say
    Finance

    Car industry bets that EU will delay announcement on combustion engine cut-off, sources say

    Published by Global Banking & Finance Review®

    Posted on December 3, 2025

    2 min read

    Last updated: January 20, 2026

    Car industry bets that EU will delay announcement on combustion engine cut-off, sources say - Finance news and analysis from Global Banking & Finance Review
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    Tags:sustainabilityEuropean CommissionAutomotive industryinnovationfinancial community

    Quick Summary

    The EU Commission might delay its decision on the 2035 combustion engine ban, with carmakers lobbying for more flexibility.

    EU Commission May Postpone Combustion Engine Ban Decision

    BERLIN, Dec 3 (Reuters) - The European Commission may delay the announcement of its support package for the EU car industry, which carmakers are hoping could include a revision of a 2035 ban on the sale of combustion engines, industry sources said on Wednesday.

    The Commission, the EU's executive arm, is scheduled to announce the package on December 10, but a German car industry source said that date would probably be delayed.

    Another industry source said there was a sense shared by all automakers that the EU Commission could delay the publication of its proposals beyond December 10.

    This source also said there was not any official confirmation of any delay.

    Earlier this week, EU Transport Commissioner Apostolos Tzitzikostas told Handelsblatt the announcement of the package could be delayed until early January.

    European carmakers are lobbying Brussels for greater flexibility on the combustion engine ban, such as acceptance of CO2-neutral fuels and plug-in hybrids.

    The industry is trying to navigate the costly shift to electric while facing competition from China and margin-squeezing tariffs.

    A letter to Brussels from German Chancellor Friedrich Merz appealing for plug-in hybrids and "highly efficient" combustion engines to be exempt from the cut-off was well received, Tzitzikostas told the German business daily.

    The European Commission said on Tuesday all of its timings are indicative.

    "We are still receiving some input. We received the German contribution on Friday. We're still waiting for some others. It is an ongoing process and, in view of all input, a decision on the next steps will be made," a Commission spokesperson said.

    (Reporting by Rachel More in Berlin, Giulio Piovaccari in Rome and Philip Blenkinsop in BrusselsEditing by Kirsti Knolle, Madeline Chambers and Jane Merriman)

    Key Takeaways

    • •EU Commission may delay the combustion engine ban announcement.
    • •Carmakers seek flexibility on the 2035 ban.
    • •German Chancellor supports plug-in hybrid exemptions.
    • •EU Transport Commissioner hints at a January announcement.
    • •The decision process is ongoing with input from various sources.

    Frequently Asked Questions about Car industry bets that EU will delay announcement on combustion engine cut-off, sources say

    1What is the European Commission?

    The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.

    2What is a combustion engine?

    A combustion engine is an engine that generates power by burning fuel, such as gasoline or diesel, to create a series of controlled explosions that drive pistons.

    3What are plug-in hybrids?

    Plug-in hybrids are vehicles that combine a traditional internal combustion engine with an electric motor and can be recharged from an external power source.

    4What is CO2-neutral fuel?

    CO2-neutral fuel refers to fuels that do not increase the total amount of carbon dioxide in the atmosphere when burned, often produced from renewable sources.

    5What is the significance of the 2035 ban on combustion engines?

    The 2035 ban on combustion engines is a proposed regulation by the EU aimed at reducing carbon emissions from vehicles, promoting a shift towards electric and sustainable transportation.

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