The combustion engine may be given another reprieve.
European Union officials introduced a proposal on Tuesday to revise a wide-ranging ban on the production of gasoline- and diesel-powered cars by 2035. The move came after intense lobbying by Europe’s automobile industry, which has been confronting declining sales in China, plunging profits and job losses.
Instead of requiring European manufacturers to produce cars with zero carbon emissions by 2035, the new proposal would require a 90 percent reduction in emissions. The plan, if approved, would mean that hybrids and internal-combustion-engine vehicles could still be made after the deadline.
Germany’s chancellor, Friedrich Merz, has been leading the campaign to ease the rules on combustion engine cars, which produce carbon emissions. Italy, Poland, the Czech Republic, Hungary, Slovakia and Bulgaria have also pushed for the rules to be revised.
Premium carmakers like Porsche, Mercedes and BMW would most likely benefit the most, said Matthias Schmidt, a European auto industry analyst.
“They’ve struggled with the transition to electric mobility,” he said. “They couldn’t place as much high value on their electric vehicles as they could on their internal-combustion-engine vehicles.”
Electric vehicles from premier brands have attracted some buyers. But their customer base is more interested in the traditional mechanics of the car, Mr. Schmidt said, just as aficionados of luxury Swiss watches are attracted to mechanical and not digital models. With top-tier cars, the combustion engine has the allure.
Mass market automakers like Volkswagen and Stellantis might pivot to electric vehicles faster, partly because of competition from Chinese brands, Mr. Schmidt said.
The proposal from the European Commission, the executive branch of the European Union, requires that emissions be offset through the use of low-carbon steel produced within the bloc or from e-fuels and biofuels. It also includes new incentives for compact European-made electric cars.
The commission said that it would also cut red tape to save the auto industry 706 million euros ($833 million) a year.
The revision is part of a wider rollback of regulations and policies intended to slow the effects of global warming. Much of the reversal has been spearheaded by President Trump, who has called climate change a “con job” and strongly supported the fossil fuel industry.
In October, the Trump administration eliminated tax credits for electric cars. And this month, it weakened fuel efficiency requirements for tens of millions of new cars and light trucks.
On Monday, Ford Motor said it was scrapping plans to produce electric vehicles and reduced its profit outlook by $19.5 billion to account for the change. General Motors and Stellantis have also recently switched their focus from electric vehicles to combustion engines and hybrids.
The European Union has long been a leader in promoting the green transition. The 2035 ban, passed two years ago, was considered a pillar of the bloc’s plan to become carbon neutral by 2050.
But officials in Europe have also become increasingly concerned about the region’s competitiveness and have sought to reduce or water down many regulations.
In February, for example, the commission proposed to substantially loosen requirements that companies report on the social and environmental effects of their operations. And last month, Brussels proposed cutting the disclosure requirements on sustainable financial products.
Sharp competition from Chinese automakers combined with steep U.S. tariffs have hammered Europe’s automobile industry. The German Association of the Automotive Industry has said that 70 percent of jobs in the country’s auto industry are linked to exports.
“China is aggressively competing in key technologies including E.V.s and batteries,” Wopke Hoekstra, the E.U. climate commissioner, said on Tuesday, “while the U.S. continues to outpace us in productivity and innovation in at least a number of sectors.”
Chinese firms like BYD are setting up factories in Hungary and Turkey, while Chinese battery makers are putting factories in Morocco to supply European carmakers and avoid tariffs.
Mr. Hoekstra added that the European car industry was “fighting for survival” and that “we are stepping in to ensure a successful clean future for the industry.”
Automakers have additionally argued that the public has not yet embraced the switch to electric vehicles and that governments have been slow to provide sufficient charging stations.
Critics blasted the retreat on climate goals. “Every euro diverted into plug-in hybrids is a euro not spent on E.V.s while China races further ahead,” said William Todts, executive director of Transport & Environment, an advocacy group. “Clinging to combustion engines won’t make European automakers great again.”
Transportation still accounts for more than a fourth of the European Union’s total greenhouse gas emissions. The level has remained unchanged over the last 30 years.
Other companies connected to the electric vehicle industry have also opposed changes in the law. This fall, more than 150 chief executives from firms including Volvo and Polestar sent an open letter to the European Commission reiterating their support for the 2035 ban.
Governments in Spain and France have also voiced their endorsement of the current deadline.
Changing the ban would require the approval of the bloc’s 27 members and the European Parliament.
Somini Sengupta contributed reporting from New York.
Patricia Cohen writes about global economics for The Times and is based in London.
The post Europe May Roll Back Combustion Engine Ban appeared first on New York Times.
