Overview
- The European Commission told auto leaders it will reassess the planned 2035 phaseout of new combustion-engine cars "as soon as possible," bringing forward a review previously slated for 2026.
- Automakers and German political and industry figures, including Chancellor Friedrich Merz and CEOs Oliver Blume and Ola Källenius, have pushed for regulatory flexibility or extra time, citing weak EV demand, Chinese competition, U.S. tariffs and falling profits.
- Ursula von der Leyen has signaled potential targeted revisions for low-emission vehicles such as hybrids, while reiterating that the long-term trajectory remains electric.
- Brussels paired the signal with industrial support, confirming €1.8 billion for European battery production and proposing an initiative for affordable, small EVs made in Europe.
- A coalition of roughly 150 EV-sector companies urged the EU to keep the 2035 cutoff, as an internal roadmap cited a 17% EV market share in the first half of 2025 and deemed the target achievable with coordinated action.