Europe's electric car industry urges EU not to delay CO2 emission targets
(Reuters) -Over 150 bosses from Europe's electric car industry signed a letter on Monday urging the European Union to stick to its 2035 zero emission target for cars and vans.
The electric car industry's signatories, including Volvo Cars and Polestar, warned against any delays to the targets, saying in the letter that would mean stalling Europe's EV market, handing an advantage to global competitors and eroding investor confidence.
It follows a separate letter at the end of August from heads of the European automobile manufacturers' and automotive suppliers' associations to European Commission President Ursula von der Leyen stressing that a 100% reduction for cars by 2035 was no longer feasible.
That letter included the signature of Mercedes-Benz CEO Ola Kaellenius.
On September 12, von der Leyen is set to discuss the future of the automotive sector automotive with industry players, which are facing the dual threat of increased competition from Chinese rivals and U.S. tariffs.
Weakening targets now would send a signal that Europe can be talked out of its own commitments, Michael Lohscheller, CEO of Polestar, said in a statement.
"That would not only harm the climate. It would harm Europe's ability to compete," he said.
Michiel Langzaal, chief executive of EU charging company Fastned, cited the clarity the 2035 target had provided and investments already made in areas like charging infrastructure and software development.
"Those investments can only create returns if we get to this goal," he said.
All European carmakers except Mercedes-Benz were on track to comply to CO₂ regulation for cars and vans over 2025-2027, according to a report on Monday from transport research and campaign group T&E.
Mercedes, it said, would need to pool its emissions with Volvo Cars and Polestar to avoid fines for missing the targets.
(Reporting by Marleen Kaesebier and Nick Carey; Editing by Matt Scuffham)
Reuters
Sun, September 7, 2025
Volvo Cars’ new electric sedan, the ES90, is displayed at an launch event in Stockholm
BRUSSELS (Reuters) -All European carmakers except Mercedes-Benz are on track to meet the European Union's 2025-2027 carbon emission targets thanks to an expected surge in sales of new electric vehicles, according to a report published on Monday.
Research and campaign group Transport & Environment forecast a marked improvement from first-half sales in 2025, when only Geely-owned Volvo Cars and BMW were on course while Stellantis, Renault, Volkswagen and Mercedes were lagging.
The report said increased launches of more affordable models thanks to declining battery prices and sharp growth of charging infrastructure were fuelling demand. It forecast battery electric vehicle sales would surpass a 30% share of the EU car market in 2027 from 18% this year.
T&E said this was a sign that targets were working and said that any weakening of the next set of targets for 2030 and 2035 would dismantle investments in EVs and allow China to extend its lead.
"Europe now faces a decisive choice: to either lead the global BEV race and confidently enter the electric age or risk falling behind in the fossil fuel era," it said.
Auto groups have said that future CO2 emission targets, including a 100% reduction by 2035, are no longer feasible. Executives are due to meet European Commission President Ursula von der Leyen on September 12 to discuss the EU sector's future.
The European Commission yielded in March to pressure from European automakers to give them three years, rather than one, to meet CO2 emission targets for new cars and vans.
T&E said expected Mercedes to keep trailing other EU automakers on the targets as it was focussing on more profitable internal combustion engine models.
Failure to meet the targets results in fines, which carmakers had said would run into billions of euros if 2025 was the target year. Compliance is now based on average emissions over the period 2025 to 2027.
Mercedes is expected to avoid fines by pooling its emissions with those of Volvo Cars and Polestar, for which Mercedes would pay its rivals. Sweden's Volvo is majority-owned by China's Geely Holding, whose chairman controls a company with a 9.69% stake in Mercedes.
(Reporting by Philip Blenkinsop; Editing by Emelia Sithole-Matarise)
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