‘No Longer Feasible’: European Carmakers Call On The EU To Tweak CO2 Targets

“We are being asked to transform with our hands tied behind our backs.”

Car Exhaust

Iulian Dnistran

By: Iulian Dnistran

Aug 27, 2025 at 4:18am ET

Add InsideEVs as a preferred source in Google

Comment

The heads of the European carmakers’ and automotive suppliers’ associations want the EU to soften the blow of the upcoming CO2 targets.
Mercedes-Benz CEO Ola Kallenius and Schaeffler CEO Matthias Zink said in a joint statement that the industry is being asked to transform with its hands tied behind its back.
“Meeting the rigid car and van CO2 targets for 2030 and 2035 is, in today’s world, simply no longer feasible,” the two representatives added.

European carmakers think the upcoming stricter emissions rules for passenger cars in the European Union are “no longer feasible” in the face of growing competition from Asia and burdening tariffs from the United States.

In a joint letter signed by Mercedes-Benz’s CEO, Ola Kallenius, and Schaeffler’s Powertrain and Chassis CEO, Matthias Zink, the two representatives called on the EU to ramp up support for the automotive industry if it wants carmakers to achieve its ambitious climate targets.

More Stories Like This

EU Parliament Votes To Ban Sales Of New ICE-Powered Cars From 2035

Mercedes Boss Wants The EU To Drop Emissions Fines

The Best Plug-In Hybrid Cars of 2025: PHEVs With Great Electric Range And Gas Mileage

How To Get The Most Out Of A Plug-In Hybrid Car

Kallenius, who is the president of the European Automobile Manufacturers’ Association (ACEA), and Zink, who is the president of the European Association of Automotive Suppliers (CLEPA), said that the industry is asked to transform with its hands tied behind its back.

As a reminder, the European Union introduced strict new rules for carbon dioxide (CO2) emissions that take effect this year, with the ultimate goal of becoming carbon-neutral by 2050. Starting this year, the average CO2 emissions from new cars and vans across the EU fleet must be 15% lower compared to 2021 values. However, the European Parliament agreed in March to give automakers some breathing room and limit fines by averaging carmakers’ performance over a three-year period rather than directly imposing the new limits from day one.

By 2030, emissions from new cars should be 50% lower than in 2021, and from 2035, only new cars without emissions will be allowed for sale. Now, though, European carmakers are saying once again that the targets are practically impossible to reach, and that more needs to be done at a policy level to enable companies to do what’s necessary.

The joint statement said that while electric vehicles will lead the charge, the EU must tweak its guidelines to include plug-in hybrids (PHEVs), range-extended EVs (EREVs), highly efficient internal combustion-engine (ICE) vehicles, hydrogen and decarbonized fuels such as e-fuels.

2025 Ford Ranger PHEV (Europe)

Softening the rules for plug-in hybrid electric vehicles (PHEVs) is one of the solutions for achieving carbon neutrality by 2050, the joint letter said.

Photo by: Ford

Regarding PHEVs, the two associations argue that the EU should not tighten the existing rules that say a plug-in hybrid must be able to travel a certain distance on electric power alone. Rather counterintuitively, the ACEA and CLEPA say that this so-called “utility factor” should be dropped completely because this is the only way to stop Chinese competitors from gaining an advantage over local models.

The two associations added that the EU should also expand purchase incentives and cut the red tape, as well as support investments in the battery, semiconductor and critical raw materials supply chains. The CO2 targets for heavy-duty trucks and buses must also be reviewed, the two representatives said.

What do you think?

View

Comments

“The world has changed drastically since the current direction has been set–and the EU’s strategy for the automotive sector must change with it,” the letter said. “We must move beyond the narrow assumption that this transition hinges solely on CO2 targets for new vehicles.”

The joint statement comes ahead of the Strategic Dialogue on the future of the automotive industry on September 12, when European Commission President Ursula von der Leyen will discuss the future of the sector with company executives.

Stay informed with our newsletter every weekday

back

Subscribe For more info, read our Privacy Policy & Terms of Use.

We want your opinion!

What would you like to see on Insideevs.com?

Take our 3 minute survey.

- The InsideEVs team

Share this Story

GO TO COMMENTS

(

)

Got a tip for us? Email: tips@insideevs.com

View all comments ( )

Trending

America Now Has More Than 80,000 Public Fast Charging Ports

Honda’s New Hybrids Are Getting Electric All-Wheel Drive

Kia Expects The Affordable EV3 To Be Its Best-Selling EV In The U.S.

Jaguar And Kia Just Proved That Design Matters Just As Much As Specs