Europe’s biggest carmakers are raising a red flag. The European Union’s plan to cut vehicle carbon emissions by 100% by 2035 — effectively banning new combustion-engine cars — may look good on paper, but industry leaders now admit it’s simply not achievable under current conditions.
On September 12, European Commission President Ursula von der Leyen will meet with top executives from across the automotive world to discuss what’s next. For Europe’s car industry, the stakes couldn’t be higher. Not only are manufacturers under pressure to decarbonize at record speed, they’re also facing two major external threats: a surge of competition from Chinese EV brands and looming US tariffs.
The Goal Is Clear, the Path Is Not
In a letter to von der Leyen, Mercedes-Benz CEO Ola Källenius and Schaeffler Powertrain and Chassis CEO Matthias Zink underlined the industry’s commitment to the big picture: carbon neutrality by 2050. No one is backing away from that. But they made it equally clear that the road to get there has become far steeper than Brussels expected.
Their argument is straightforward. Europe’s carmakers are now almost entirely dependent on Asia for batteries, leaving them vulnerable. Charging networks across the continent remain underdeveloped. Manufacturing costs are rising. And on top of that, US tariffs are squeezing trade. Against this backdrop, the EU’s mid-term goals — a 55% cut in car emissions and 50% in light trucks by 2030, and a full switch to zero-emission vehicles by 2035 — just don’t add up.
A Plea for Technology Diversity
Källenius and Zink argue that regulation alone won’t make the transition work. Instead of betting everything on one technology, Europe needs a broader toolkit. That means giving room to plug-in hybrids, extended-range vehicles, ultra-efficient combustion engines, hydrogen power, and low-carbon fuels alongside full EVs. Only then, they say, can the industry meet climate goals while still keeping cars affordable and factories competitive.
They also urged the EU to take a hard look at emission rules for heavy trucks and buses, areas where full electrification is far trickier than for passenger cars.
Political Pressure Mounts
The industry’s concerns are already shifting the political conversation. Back in March, Brussels quietly extended automakers’ deadlines for the 2025 targets. Now, even members of von der Leyen’s own party are pushing to roll back the 2035 combustion engine ban, warning that Europe risks weakening its own car industry at the very moment global competition is heating up.
With the September summit approaching, one thing is certain: Europe’s road to a carbon-neutral future won’t be as straightforward as planned. The coming months will reveal whether policymakers are willing to adjust course — or double down on their original vision.
