European carmakers celebrate EV gains but push back on engine Ban

Europe’s auto bosses came to Munich with one message on the surface and another behind closed doors.

On stage, they showed off their shiny new electric vehicles. Off stage, they were blunt: the 2035 engine ban isn’t going to work.

The top players (Volkswagen, Mercedes-Benz, and Stellantis) are using this week’s auto show to push back hard against Europe’s combustion-engine phaseout. They’re not hiding their frustration anymore.

Volkswagen CEO Oliver Blume said, “It is unrealistic to expect to have 100% electric vehicles by 2035.” This came right after he showed off a whole fleet of EVs to reporters. “I am strongly advocating for reality checks,” he added.

And Mercedes-Benz CEO Ola Källenius told Bloomberg, “Now is the time to do an inventory of what in the policymaking has worked, and what needs to be adjusted. We are very convinced that doing nothing is not an option.”

Auto giants fight Brussels on 2035 deadline

The heat is building ahead of a summit in Brussels this Friday. European Commission President Ursula von der Leyen is scheduled to meet with industry leaders to hear their concerns. And she’ll hear a lot. Stellantis executive Jean-Philippe Imparato said flat out: “The 2035 deadline is not achievable.”

These aren’t soft complaints. Automakers are dealing with a stagnant Europe car market, shaky EV demand, and Chinese competition that’s moving in fast. BYD is leading that charge, offering affordable models that European companies can’t match yet.

At the same time, politicians like German Chancellor Friedrich Merz, whose party has opposed the phaseout, are scheduled to speak in Munich and echo the industry’s worries.

The automakers want the EU to allow more flexibility. That includes extending the life of range extenders; small gas engines that charge a car’s battery. They also want more time for hybrids, continued subsidies for EVs, and looser safety rules for smaller vehicles.

According to them, this isn’t about avoiding climate goals. It’s about giving Europe time to adjust without collapsing the car industry or handing the market over to China.

EU faces pressure from all sides as climate debate intensifies

But EU regulators and environmental groups are pushing back. They say watering down the 2035 target would kill Europe’s credibility on climate. Investors would get mixed signals, and clean-tech growth would slow down.

Brussels wants to show the world it’s serious about ditching fossil fuels, and the car sector is a key battleground. There’s more at stake than just cars. The move to EVs affects millions of workers across Germany, France, and Italy.

If combustion engines die too fast, supply chains break. That’s the nightmare scenario for Europe’s industrial powerhouses. But for the EU, delaying the ban risks falling even further behind China.

The European Commission is already reviewing its 2030 and 2035 climate targets for the auto sector. It’ll propose any changes next year. In the meantime, Friday’s Brussels meeting is expected to be tense. Automakers and parts suppliers will line up to tell Von der Leyen what they need: more time, more flexibility, and fewer rules.

The broader climate discussion is also heating up. The Commission has proposed a 90% emissions cut by 2040, and not everyone’s on board. France wants that debate moved up to the leaders’ summit next month. Italy is demanding a biofuels carveout as a condition for agreeing to the target. That means more delays, more negotiation, and more uncertainty for the auto industry.

So while carmakers are pretending everything’s full speed ahead on EVs, the truth is they’re slamming the brakes on the phaseout behind the scenes. And they’re not being subtle. This is a full-blown lobbying war. On one side: Europe’s biggest auto giants. On the other: Brussels regulators who don’t want to blink first.

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