Unachievable emissions reduction goals, as per Stellantis CEO's assessment

In a move aimed at reducing greenhouse gas emissions and achieving carbon neutrality by 2050, the European Commission adopted the ban on selling new petrol or diesel cars, including hybrids, in the European Union from 2035 as part of the European Green Deal in March 2023. However, this flagship measure has faced criticism from some of the industry's leading figures.

Ola Källenius, CEO of Mercedes-Benz and president of the European Automakers Association (ACEA), has described the 2035 target as "unattainable". He is not alone in his concerns, as BMW has proposed pushing back the ban to 2050, while the new CEO of Stellantis, Antonio Filosa, has expressed doubts about the feasibility of the EU's targets.

Filosa has advocated for flexibility elements such as extending the transition period for combustion engine vehicle sales beyond 2035, promoting hybrid technologies, and supporting investments in advanced manufacturing. He has also reaffirmed the need for "flexibility levers" to address decreasing sales and the aging vehicle fleet.

Filosa has proposed measures such as "greening the fleet through scrappage or conversion bonuses for newer vehicles" and better valorization of hybrid vehicles. He has also emphasized the need for "strategic action" and "quick" responses to prevent the decline of the European automotive industry.

When asked about the reconsideration of the 2035 deadline, Filosa did not provide a specific response. However, the European Commission has set a "review clause" for 2026 to assess the situation and potentially make adjustments to the text of the ban on selling new petrol or diesel cars from 2035.

The strategic dialogue with car manufacturers, which will be opened by Commission President Ursula von der Leyen next week, follows the start of the Munich Auto Show (IAA). The dialogue aims to address the concerns of the industry and find solutions that balance EU climate goals with industrial competitiveness.

Despite German reservations, the European Commission's ban on selling new petrol or diesel cars from 2035 was adopted. Filosa has also expressed the need for measures to stop the "vicious circle" leading to decreased sales and delayed vehicle fleet renewal. He has suggested "super CO credits" for the sale of small electric vehicles as a potential solution.

As the European Union moves towards a carbon-neutral future, the challenges faced by the automotive industry in meeting the ambitious targets set by the European Green Deal are becoming increasingly apparent. The strategic dialogue with car manufacturers is a crucial step in finding a path forward that ensures a sustainable future for both the environment and the European automotive industry.