In March 2021, Volvo said it would go fully electric by the end of the decade. However, the lofty EV goal was dropped in September 2024, when the Geely-owned company said plug-in hybrids would stick around for a little while beyond 2030. Despite getting cold feet, the automaker headquartered in Gothenburg was adamant that the European Union should maintain its goal of banning the sales of new cars with combustion engines from 2035.
When news broke yesterday that the European Commission had proposed a package allowing new ICE cars past the originally announced cut-off date, Volvo wasn’t exactly happy. A company spokesperson told Automotive News Europe that reverting the ban could do more harm than good, as the decision “risks undermining Europe’s competitiveness for years to come.”
Additionally, it believes other automakers would have been able to adapt their portfolios to an EV-only lineup by 2035 had the ban remained unchanged: “Volvo has built a complete EV portfolio in less than ten years and is ready to go full electric with a bridge of long-range hybrids. If we can do it, others can as well.”
Kia is also an advocate of dropping conventional powertrains. In August, the company’s CEO in Europe, Marc Hedrich, said blocking the path toward a purely electric lineup would have significant repercussions: “We have an avalanche of electric cars coming, and if we suddenly have to stop launching EVs, it would cost us a fortune.”
But Volvo and Kia are in the minority, as other automakers support the EC's decisions this week. Reuters cites Volkswagen calling the proposal “pragmatic” and “economically sound overall,” while Renault saluted the updated package, particularly the Small Affordable Cars initiative for electric models.
The Small Affordable Cars initiative is designed to create a new subcategory of vehicles (“M1E”) up to 4.2 meters (165.3 inches) in length, incentivizing automakers to develop and build EVs in Europe. Some regulatory constraints will be relaxed to lower manufacturing and selling prices. Automakers will earn “super credits” to help them meet emissions targets.
BMW has mixed feelings about the decisions taken this week. On the one hand, it supports keeping combustion engines in use beyond 2035. On the other hand, forcing increasingly tighter CO2 emissions regulations is deemed a “superficial fix.”
Stellantis hasn’t issued a response yet, but only a month ago, it made its stance clear, stating that new ICE cars should continue to be produced after 2035. Similarly, Mercedes CEO and President of the European Automobile Manufacturers' Association (ACEA) recently urged the European Commission to drop the ban. Ola Källenius sent a letter to EC President Ursula von der Leyen, warning her that the 2035 target was unrealistic.
ACEA issued a statement a few hours ago, describing the decision to walk back the ban as a “first step to creating a more pragmatic and flexible pathway to align decarbonization with competitiveness and resilience objectives.” However, it cautions that additional measures are needed to ease the transition to EVs.
Toyota, the world’s largest carmaker for the fifth year in a row, has perhaps been the most vocal opponent of banning combustion engines. Chairman Akio Toyoda famously said in 2024 that EVs would never exceed a 30 percent global market share. Earlier this year, his math showed that nine million electric cars have the same carbon footprint as 27 million hybrids. His analysis accounted for emissions from battery and vehicle production. As you can imagine, stating that an EV pollutes as much as three hybrids has sparked significant controversy.
As a refresher, car companies active in the 27 member states of the European Union must now slash CO2 emissions by 90 percent compared to 2021 levels. The EC makes it clear that internal combustion engines, plug-in hybrids, range extenders, and mild hybrids will continue even after 2035. The remaining 10 percent of emissions must be offset by biofuels and synthetic fuels, as well as by low-carbon steel produced in the EU.
All told, there is no end date for combustion engines in the EU.
Sources: Automotive News Europe, Reuters, ACEA
