Automakers threw down a clear marker this week: the plan to end new combustion-engine sales by 2035 won’t fly under today’s rules. Reports from Bloomberg and Reuters say industry chiefs now want regulators to rewrite the roadmap, warning that the current targets will miss the market and weaken the car business.
The CO2 Targets Are “No Longer Feasible”
The push comes from Europe’s top trade groups. In a joint letter to European Commission President Ursula von der Leyen, ACEA (representing carmakers) and CLEPA (representing suppliers) say the sector backs net-zero by 2050 but needs a realistic path. “Meeting the rigid car and van CO2 targets for 2030 and 2035 is… no longer feasible,” wrote Mercedes-Benz CEO Ola Källenius and Schaeffler’s Matthias Zink. They urged a recalibration that keeps climate goals intact while protecting jobs, factories, and supply chains.
Their case hinges on what enthusiasts care about: product and pace. Battery costs remain high, Europe still relies on Asia for cells, public chargers lag where many buyers live, and new U.S. auto tariffs complicate export math. Put together, the leaders say the timelines force model decisions that don’t match demand. They want room for hybrids, efficient ICE, hydrogen, and synthetic fuels alongside EVs.
“Now is a critical moment for our industry and we need to turn policies towards the right direction – a direction that will help the European automotive industry grow and thrive while leading the transformation to carbon-neutral mobility.
With this letter, we also clearly underline our full commitment to doing our part and to helping the European Union to achieve net zero by 2050. We share a common destination, yet the journey requires more pragmatism and flexibility to keep the motor of Europe’s automotive sector running. Therefore, we are looking forward to discussing these aspects in the upcoming strategic dialogue with the European Commission,” Ola Källenius said in an open letter.
Still On Track For Net Zero By 2050?
Regulators have already blinked on the near term. In May, the EU finalized a one-time flexibility that lets carmakers average fleet CO2 over 2025–2027 instead of hitting the 2025 mark in a single year. The headline 2035 zero-emission requirement remains, though.
Sales data show why the timeline feels tight. Battery-electric cars sit at about a 15–16% share of EU registrations so far in 2025, with vans far lower. Hybrids lead the growth curve, and many buyers still pick gasoline or even diesel. That mix makes meeting each step-down hard without heavy discounting or pulled models.
Here are the targets that set the stakes. From a 2021 baseline, new-car CO2 must fall 15% by 2025, 55% by 2030, and 100% by 2035 (vans: 15%, 50%, 100%). Policy advisers translate that to roughly 93.6 g/km for cars in 2025 and 49.5 g/km in 2030 – before the jump to zero in 2035. Misses trigger fines that shape lineups just as much as showroom demand does.
Trade headwinds add pressure. Washington’s 2025 auto-tariff moves rattled planning and margins for European exports, officials later outlined adjustments, but uncertainty lingers. When profits swing on tariff math, brands get cautious about niche engines and low-volume specials.
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