QUOTES: Reactions to European Commission proposal to reverse 2035 combustion engine ban

The European Commission on Tuesday unveiled a revised automotive policy package that effectively rolls back a planned ban on the sale of new internal combustion engine vehicles from 2035, following pressure from Germany, Italy, and major European automakers.

Under the revised proposal, the Commission lowered its target to a 90% reduction in vehicle tailpipe emissions by 2035 compared with 2021 levels, instead of a full phase-out. The package also introduces measures aimed at accelerating electric vehicle (EV) adoption while giving manufacturers greater regulatory flexibility.

The announcement drew mixed reactions from policymakers, environmental groups, industry representatives, and automakers across Europe.

Steffen Kawohl, policy advisor at the German Mittelstand Association (DMB), said abandoning the combustion engine ban could slow the industry’s transformation but would not stop it entirely. He added that the additional time would only be beneficial if Germany uses it to advance the shift toward fossil-free mobility.

Dominic Phinn, head of transport at Climate Group, criticized the move, saying that weakening the petrol and diesel phase-out undermines companies that are investing billions of euros in electric fleets and depend on regulatory stability.

Chris Heron, secretary general of E-Mobility Europe, warned that reopening the door to plug-in hybrids and biofuels could slow Europe in a highly competitive global market. He stressed that the future of transport is electric and questioned whether Europe would lead that transition or rely on imports.

German Chancellor Friedrich Merz welcomed the Commission’s revised stance, saying the changes reflect a clear signal from Berlin. He said greater technological openness and flexibility would help better align climate targets with market realities, businesses, and jobs.

Jan Dornoff, research lead at the International Council on Clean Transportation (ICCT), said the package still shows the Commission’s commitment to electrification through initiatives such as corporate fleet electrification and affordable EV programs. However, he warned that concessions on CO2 standards risk delaying necessary structural changes.

Italy’s Foreign Minister Antonio Tajani said the decision would protect around 70,000 jobs in Italy. While emphasizing environmental protection, he said policies must also safeguard workers and businesses.

Ben Nelmes, chief executive of NGO New Automotive, said Europe’s battery manufacturing sector needs regulatory clarity and consistency. He warned that rewriting the rules could undermine trust in EU regulations and jeopardize Europe’s economic future.

Julien Thomas, a midcap analyst at TP ICAP, said the measures are generally favorable for European manufacturers, particularly high-volume producers and makers of light commercial vehicles. He cited companies such as Renault, Volkswagen, and Stellantis as potential beneficiaries amid easing regulatory uncertainty.

Renault Group said it welcomed the Commission’s automotive package, noting that it addresses key challenges facing the European industry. The company highlighted measures aimed at accelerating EV adoption, including the introduction of a category for small electric vehicles under 4.2 meters and initiatives to green corporate fleets.

Volkswagen Group described the Commission’s draft proposal for new CO2 targets as economically sound. The automaker welcomed special support for small electric vehicles and greater flexibility in 2030 emissions targets, saying the approach aligns better with market conditions.

Volvo Cars warned that weakening long-term climate commitments for short-term gains could undermine Europe’s competitiveness. The company said a consistent and ambitious policy framework, along with investments in public infrastructure, is essential to deliver benefits for consumers, the climate, and European industry. Volvo added that it has built a full EV portfolio in under a decade and believes other automakers can do the same.

Thomas Peckruhn, president of Germany’s ZDK association for motor vehicle trade, said businesses continue to face challenges such as high charging costs and insufficient infrastructure. He stressed that climate-neutral mobility will only succeed if it is affordable, practical, and reliable for consumers. -Written by Mathias de Rozario in Gdansk; Editing by Matt Scuffham/Reuters