EU Green’s deals have been mixed receptions from the European automotive industry since the establishment of IS. This will face a forced shift to reduce CO2 emissions and by 2035, we will face a gradual shift in internal combustion engine (ICE) vehicles, invest in electrification and take financial responsibility for the end-of-life vehicles.
Immediate negotiations 2040 Climate Targetwhich proposes to reduce emissions by 90%, pushing the sector to increase electric vehicle production amid uncertainty among buyers.
It is a tradition of using ice engines to produce vehicles, EU Automobile Sector It is pinched between rocks and hard places, trying to adapt to the green transition – prioritizing production of clean vehicles and ensuring sustainable use of auto parts and materials – as a great power like Germany already feels the heat, it is struggling to keep its nose ahead of global competition.
CO2 emissions
Regarding emissions, the controversial rules in Brussels and the capital foresee CO2 reduction targets of 55% by 2030, 55% and 100% by 2035 compared to 2021.
MEP Jens Gieseke (Germany/EPP), who sits on both the Environmental and Industry Committees of the European Parliament, defends the European Commission (EPP)’s opposition to the ICES blanket ban proposed by the Commission.
“We have proposed to open the law by recognizing the role of CO2-neutral fuels and opening up a pathway for decarbonized ice to become part of the technology mix of the future,” Gieseke told EuroNews. “If we did that, we would have allowed for fair, open, market-based competition between the various propulsion technologies.”
German lawmakers said the market, not the lawmakers, should decide which technology is most cost-effective and which technology is best to reduce emissions.
Gieseke is supported by his colleague Peter Liese, an EPP environmental policy spokesman. It was proposed For “technical openness” right after the June 2024 EU election, when Green lost a great influence in Parliament.
Liese, who was interviewed by the Euroneuz at the time, confirmed the EPP’s desire to change the swath of green trading, particularly the laws reducing automobile CO2 emissions, and argued that European automakers were not prepared to meet stricter restrictions on exhaust pipe carbon emissions by 2025.
Electrification or die?
Following China’s emergence as a global global exporter, the European market for battery electric vehicles is flooded with brands such as BYD, but domestic manufacturers are slow to adopt battery EVs.
Latest and disruption of flagship battery projects Swedish battery plant Northvolt bankruptcy Earlier this year, Europe’s ability to build a competitive, homemade value chain is questionable.
Recent EV sales across the EU have not met previous expectations, both for the 2023-2024 battery EV (-6%) and plug-in hybrid models (-5%), as well as for the overall vehicle market (-4%) (-6%) and plug-in hybrid models (-5%), according to the Fraunhofer Institute.
In June 2025, the Chinese EV brand reached its highest ever market share in Europe at 5.4%, reaching 5.1% by July 2025, according to a report by market research firm Jato Dynamics.
EU tariffs on Chinese cars may give European automakers room to compete, but that’s not enough. Industry representatives have denounced the lack of sufficient infrastructure, such as charging points, to drive away EVSs that buy consumers.
Rep. Gieske regretted the loss of 51,000 jobs in the German auto sector within a year as “devastating” as a result of the transition to electrification.
“Revising the CO2 performance standard is extremely necessary,” Gieseke said.
The European Association of Automobile Manufacturers (ACEA), a leading lobbying group in the automotive industry, has repeatedly expressed concern about the lack of key conditions that the sector is missing to reach the boost needed to produce and adoption of zero-emission vehicles.
These include “charge and hydrogen replenishment infrastructure, competitive manufacturing environment, affordable green energy, purchasing and tax incentives, and a safe supply of raw materials, hydrogen and batteries,” the group’s board said.
ACEA maintains its Green Deal goals and commitment to green mobility, flagging hundreds of electrical models, and investing billions, but seeks a “practical path” along with industrial, economic and geopolitical scenarios.
“It means realigning targets and enabling the right conditions, such as infrastructure and affordable energy,” an ACEA spokesperson told Euronows. “It also means ensuring consistency and simplification of the law. For green trading to succeed, it requires rules that are consistent, streamlined and ad-aligned across Europe, rather than fragmentation or constantly changing.”
Echo from Germany
A similar view echoed from Germany after the February election, which replaced socialist Olaf Scholz with conservative Friedrich Merz.
With the new prime minister, Germany’s direction has shifted to a potential narrowing focused on climate policy, and the rise of the conservative CDU/CSU party suggests a slower pace of business deregulation and tax cuts and energy transitions.
In defending the EU’s automotive powerhouse, Prime Minister Mertz warned EU executives in July against potentially strict CO2 restrictions on corporate vehicles. Mertz emphasized that the automotive industry is one of Europe’s core sectors. “You should not allow them to destroy it by narrowing it down to a specific technology.”
Last year, Italy announced a joint proposal supported by Austria, Bulgaria, the Czech Republic, Poland, Romania and Slovakia, calling for a planned review of CO2 emission standards. However, the law was sealed on June 17 by co-scholars councils and councils.
Are Automotive Industry CEO and Committee President Ursula von der Leyen on Friday seeing the opportunity for EU executives to provide flexibility in rules calling for an end to diesel and petrol vehicles within the next decade?
Health and medical experts across Europe wrote on Monday to Wopke Hoekstra, the European Commissioner of Climate.
The signer pointed out Risks to human health of nitrogen dioxide (NO2) and particulate matter (PM2.5) from the combustion of fossil fuels in road transport.
“This goal (the 2035 ice ban) is not only essential to reducing greenhouse gas emissions, but also to reduce toxic air pollutants and protect public health,” the statement said. “Slowing or weakening this goal will put lives at risk, extending Europe’s dependence on fossil fuels and undermining our collective right to clean the air.”
The struggle between the automotive sector and the them Lobbying to maintain targets As is it, it is set to define the next few months.
