Raise your hand if you saw this coming. After automakers and governments criticized the European Union for rushing the combustion engine's demise, some politicians are also against the ICE's 2035 ban. The European Parliament's largest political group, the European People's Party (EPP), is pressuring the higher-ups from Brussels to change their minds. Reuters got a hold of a draft paper saying the ban "should be reversed."
The EPP wants the combustion engine to survive in cars that run on alternative fuels beyond the middle of the next decade. In addition, the draft paper notes manufacturers should still be allowed to sell plug-in hybrids past 2035. Faced with dwindling demand, many car companies active in Europe have pushed back their lofty EV goals. Even Volvo has said it'll likely still sell cars with gas engines after 2030.
Before that, the EPP wants the stricter emissions regulations coming into effect next year to be delayed until 2027 to protect companies from paying fines. As previously reported, the current fleet average target of 115.1 g/km (based on the WLTP cycle) will decrease by around 19% in 2025 to 93.6 g/km. Automakers pay a €95 ($100) fine for each gram over the fleet emissions target. Since the penalty is applied to every single car, the fine quickly adds up when you're a large automaker like the Volkswagen Group.
Renault CEO Luca de Meo has done the math, and he estimates the industry could pay as much as €15 billion ($15.7 billion) in fines next year alone. Yes, with a "b." However, BMW boss Oliver Zipse said the tougher fleet emission target should not be delayed because car companies had five years to prepare for the stricter rules. It's a numbers game since it basically comes down to whether an automaker sells enough EVs to offset the emissions generated by its ICE cars.
The EPP is influential, considering it is the largest political group in the European Parliament and the recently appointed new European Commission. We'll have to wait and see how this plays out, but any decision taken in Europe will have global ramifications. If a certain manufacturer isn't allowed to sell its gas car in the EU, the loss of a major market (with 27 countries) could disrupt economies of scale, increase production costs, and potentially kill the model altogether.
That would have repercusions on jobs, many of which are already under threat in Europe. Automotive juggernaut Volkswagen is seriously considering shutting down three factories in Germany to cut costs.
Source: Reuters
