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Europe’s Carmakers Warn: CO2 Goals Threaten Industry’s Future

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Leading European automotive groups are urging the EU to rethink its climate targets, claiming that rigid CO2 rules and shifting global dynamics could damage competitiveness and risk long-term jobs and innovation.

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Leading European automotive groups are urging the EU to rethink its climate targets, claiming that rigid CO2 rules and shifting global dynamics could damage competitiveness and risk long-term jobs and innovation.

Industry Sounds the Alarm

In a joint letter to EU Commission President Ursula von der Leyen, Europe’s top carmakers and suppliers called for a course correction in climate regulations ahead of a major automotive policy summit on September 12.

“Hands Tied” in Transition Push

Manufacturers argue that while they remain committed to carbon neutrality by 2050, current policies don’t match on-the-ground realities. They say they’re being asked to transform “with our hands tied,” citing cost burdens and global trade headwinds.

Heavy Reliance on Asia Sparks Warnings

The letter highlights Europe’s growing dependence on China for critical battery materials. Without a localized supply chain, the automotive sector fears falling behind in the race for electric vehicle dominance.

EV Market Still Lags Behind Targets

Despite major investments, electric vehicles account for only 15% of new passenger car sales in Europe—far below EU projections. Carmakers insist stronger, long-term incentives are needed to convert hesitant consumers.

Flexibility Over Idealism

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Automakers say the current emissions targets—set years ago—are no longer viable. They’re urging the EU to move “beyond idealism” and adopt more flexible, market-driven regulations in line with 2025 realities.

Tech-Neutral Approach Backed

While electric vehicles are seen as key to decarbonization, the sector wants support for plug-in hybrids, hydrogen vehicles, and efficient combustion engines. It advocates for technological neutrality to meet climate goals realistically.

Urgent Action Needed for Trucks and Buses

The letter also calls for immediate revision of CO2 rules for heavy-duty vehicles. Current regulations overlook trucks and buses, which require tailored incentives and infrastructure to kickstart meaningful transition.

Europe’s Industrial Edge at Stake

Carmakers warn that failure to adapt could erode the EU’s manufacturing base and global leadership. They see this as a pivotal moment to align climate ambition with industrial resilience and economic security.

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