Reactions to European Commission proposal to reverse 2035 combustion engine ban

Dec 16 (Reuters) - The ‌European Commission on Tuesday made public proposals that reverse an effective ban on sales of new internal combustion engine cars from 2035, bowing to pressure ‍from Germany, Italy ‌and major automakers.

The revised package cuts the planned 2035 goal to a 90% reduction in tailpipe emissions compared with 2021, and also introduces measures to accelerate ⁠the shift to electric vehicles while giving manufacturers more flexibility.

Here are the reactions to ‌the decision:

STEFFEN KAWOHL, POLICY ADVISOR AT THE GERMAN MITTELSTAND ASSOCIATION (DMB)

"Abandoning the ban on combustion engines may slow down the transformation of the automotive industry, but it will not stop it entirely. This slowdown would only make sense if the German economy uses the extra time to advance the transition to fossil-free mobility." 

DOMINIC PHINN, HEAD OF TRANSPORT AT CLIMATE GROUP

"Today’s a tragic win for the ⁠entrenched power of an industry clinging to the past over a competitive, forward-looking sector ready to drive Europe into a prosperous future."

"The watering down of the petrol and diesel-engine phase-out flies in the face of leading ​companies across Europe, who are investing billions in electric fleets and desperately need the stability it provides."

CHRIS ‌HERON, SECRETARY GENERAL OF E-MOBILITY EUROPE

"It's the wrong time for Europe to ⁠take the wind out of its own sails. Europe's electric car markets are growing strongly, yet by reopening the door to plug-in hybrids and unscalable biofuels, we slow ourselves down in a highly competitive global race. The future of transport is electric; the question is whether Europe builds it or imports it."

FRIEDRICH MERZ, GERMAN ​CHANCELLOR

"It is good that the Commission is now opening up regulation in the automotive sector following the clear signal from the German government. Greater openness to technology and more flexibility are right steps to take in order to better align climate targets, market realities, businesses and jobs."

JAN DORNOFF, RESEARCH LEAD AT THE INTERNATIONAL COUNCIL ON CLEAN TRANSPORTATION (ICCT) 

"The Automotive Package signals that the European Commission remains committed to car electrification, as the corporate fleets and small affordable electric car initiatives show. But the proposed ​changes to the ‍CO2 standards are risky concessions that will delay necessary ​transformations."

BEN NELMES, CEO OF NGO NEW AUTOMOTIVE

"What the battery manufacturing sector needs is clarity and consistency from Europe.. In rewriting these rules, the European Commission is undermining trust in its own regulations and gambling with Europe's economic future."

JULIEN THOMAS, TP ICAP MIDCAP ANALYST

"In our view, these measures are generally favourable to European manufacturers, particularly those producing high volumes and light commercial vehicles (where regulatory uncertainty has caused sales to fall this year), such as Renault, Volkswagen and Stellantis."

VOLKSWAGEN 

"From the Volkswagen Group's perspective, the European Commission's pragmatic draft proposal for new CO2 targets is economically sound overall."

"The fact that small electric vehicles are to receive special support in future is very positive. It is extremely important that ⁠the CO2 targets for 2030 are made more flexible for passenger cars and adjusted for light commercial vehicles. Opening up the market to vehicles with combustion engines while compensating for emissions is pragmatic and in line with market conditions."

VOLVO CAR 

"Weakening long-term ​commitments for short-term gain risks undermining Europe’s competitiveness for years to come. A consistent and ambitious policy framework, as well as investments in public infrastructure, is what will deliver real benefits for customers, for the climate, and for Europe’s industrial strength."

"Volvo Cars has built a complete EV portfolio in less than ten years and are ready to go full electric with a bridge of long-range hybrids. If we can do it, others can as well."

THOMAS PECKRUHN, ‌PRESIDENT OF GERMANY'S ZDK ASSOCIATION FOR MOTOR VEHICLES TRADE    "Every day, our businesses experience where European regulation fails: high charging costs, lack of infrastructure and suitability for everyday use by consumers. Climate-neutral mobility only works if it is affordable, practical and reliable for people. Anything else remains theoretical."

(Written by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)