The European automotive industry is divided over a possible revision of the goal of phasing out the combustion engine by 2035.

Ana Tuñas Matilla

The possibility of a review of the European Union's decision to ban the sale of combustion vehicles starting in 2035 within the EU has reopened the divide between companies seeking to promote electric vehicles to accelerate the decarbonization of light road transport and those resisting change and warning that it is a mistake to rely on a single technology.

Both sectors are making moves ahead of the upcoming strategic dialogue on the future of the European automotive industry, scheduled for September 12 .

In the background, the battle between electric companies and oil companies that are developing non-fossil fuels with zero net CO₂ emissions (taking into account their entire life cycle and not just what comes out of the exhaust pipe) and that can be used in internal combustion engines (gasoline and diesel).

In favor of reviewing it, the big "traditional" brands

The first to take the step have been the presidents of the European car manufacturers ( ACEA) and suppliers ( CLEPA ), Ola Källenius and Matthias Zink, respectively, who at the end of August sent a letter to the president of the European Commission, Ursula von der Leyen, in which they urged a "correction of course" of the automotive transition to adapt it to the current geopolitical, economic and market realities, with a "comprehensive and pragmatic" political plan.

Källenius and Zink are also the heads of Mercedes-Benz and Schaeffler 's Transmission and Chassis business.

The CEOs of Stellantis (Peugeot, Citroën, DS, Opel, Vauxhall, Abarth, Alfa Romeo, Fiat, Jeep, Lancia, Maserati, Chrysler, Dodge, and RAM), Antonio Filosa, and BMW , Oliver Zipse, have also openly spoken out against the 2035 target in recent days.

Although all of them maintain their commitment to the goal of selling only zero-emission cars by 2050, they maintain that the intermediate goals— reducing CO₂ emissions by 55% by 2030 and ensuring that only new zero-emission vehicles can be sold from 2035 onward —are unrealistic.

More than 150 senior executives defending the electric vehicle support its maintenance.

For their part, senior executives from more than 150 companies across the entire electric vehicle value chain in Europe have also sent an open letter to Von der Leyen urging her to "stand firm and not back down" on the EU's 2035 zero-emissions target for cars and vans, and to take bolder actions to consolidate European leadership in electric mobility.

The letter has been signed by senior executives of electric car manufacturers ( Volvo or Polestar) , battery manufacturers in Europe ( Verkor, Samsung, LG Energy ), charging providers ( Fasted, IONITY, Alpitronic ), material suppliers ( Talga, Orano, Rock Tech Lithium) and electricity companies ( Iberdrola, EDP ), among others.

Their call is for the 2035 zero-emissions target not to be delayed or weakened, and for stronger industrial and demand-side policies to be promoted to ensure Europe's competitiveness in the global race for electric mobility.

Arguments to keep it

Those in favor of maintaining the 2035 target argue that hundreds of billions of euros in new investment have already been mobilized across Europe to meet it: from gigafactories for batteries in France and Germany, to renovated or new car plants in Slovakia and Belgium, to expanded charging infrastructure and major improvements to electricity grids.

They warn that backtracking now would erode investor confidence, slow momentum, and give global competitors a long-term advantage .

Regions like China have moved more quickly into electric power and with greater strategic focus, and will continue to advance. European hesitation now, including expanding its focus beyond 2035 to less efficient transitional technologies, would risk greater dependence and loss of global influence, they argue.

To prevent this, they are calling for a much more robust industrial strategy to scale battery production, secure raw materials, and support supplier transformation; smart and consistent incentives across all Member States to support citizens in the transition to electric vehicles; and accelerate the deployment of charging infrastructure.

Arguments to delay it

Those calling for the target to be revised complain that they are being asked to transform "with their hands tied," with an almost total dependence on Asia throughout the electric battery value chain and the higher costs of production within the EU.

For change to be an option , "much more ambitious, long-term, and consistent" demand incentives are needed, including lower energy costs for charging, purchase subsidies, tax reductions, and favorable access to urban space.

Europe's transformation plan for the automotive industry, they add in their letter, must go beyond idealism and recognize current industrial and geopolitical realities . "Meeting rigid CO₂ targets for cars and vans for 2030 and 2035 is no longer viable in today's world."

In his opinion, the current CO₂ reduction trajectory in road transport needs to be recalibrated to ensure it meets EU climate goals while safeguarding industrial competitiveness, social cohesion, and the strategic resilience of its supply chains. EFEverde atm/al