EU Carmakers say 2035 CO2 targets are “no longer feasible”: why this pivot matters for drivers, jobs, and the EV race

What just happened

On August 27, 2025, Europe’s top auto groups sent a blunt message to Brussels: the current car and van CO2 rules — including a 100% reduction target for new cars by 2035 — aren’t workable under today’s market and supply conditions. In a letter to European Commission President Ursula von der Leyen, Mercedes‑Benz CEO Ola Källenius and Schaeffler executive Matthias Zink urged a more flexible path that still hits net‑zero by 2050 but allows a broader toolkit — EVs first, plus plug‑in hybrids, hydrogen, and cleaner fuels. They cited battery supply dependence on Asia, patchy charging, and rising costs, as well as new trade barriers.

Why this matters (in plain English)

Think of Europe’s car transition like a carefully planned road trip. The destination (net‑zero) is still set in the GPS, but the route needs to be recalculated because of unexpected traffic — supply bottlenecks, tariffs, and charging gaps. The industry’s case is simple: forcing everyone into the fast lane too quickly risks stalls (factory slowdowns), detours (price cuts and cancellations), or fines that ultimately show up in sticker prices. The Commission already offered some “breathing space” this year by letting carmakers average their 2025 emissions over 2025–2027 — a signal that flexibility can coexist with ambition.

Connecting the dots with recent news

Europe’s EV push isn’t happening in a vacuum. The U.S. sharply increased tariffs on Chinese EVs and key components last year, raising the price of imported tech and complicating global supply chains that European brands also tap. Meanwhile, the EU moved to counter subsidized Chinese EVs with its own duties — a trade chess match that supports domestic players but can raise near‑term costs and uncertainty. When automakers say targets are “no longer feasible,” they’re partly reacting to these new headwinds.

The state of play: EVs are growing, but not fast enough (yet)

EVs now account for roughly 15% of new EU car sales (and about 9% for vans). That’s real progress — but not the tsunami regulators hoped for by mid‑decade. The ask from industry is to keep EV momentum while allowing transitional tech where it meaningfully cuts emissions. In other words, fewer purity tests, more emissions shaved per euro. That may sound like splitting hairs, but it’s a pragmatic way to keep factories running, suppliers invested, and consumers moving forward without sticker shock.

How it could touch your daily life

• Car choices: Expect a broader mix on dealer lots for a bit longer — more affordable EVs, plus some capable plug‑in hybrids and highly efficient gas models as backstops. That variety can help households match range, budget, and charging realities.
• Prices and incentives: If rules ease at the margin, brands might avoid deep discounting that undermines future investment. Conversely, if trade frictions add costs, governments may tweak incentives to keep monthly payments palatable.
• Charging confidence: Policymakers may focus harder on “boring but vital” infrastructure — reliable fast chargers where people actually drive — so your next road trip feels less like a power‑outlet scavenger hunt.

The comic relief (because car policy could use some)

Regulators have been flooring it; carmakers are tapping the brakes; and drivers are stuck in the middle like a passenger telling the GPS, “Yes, I see the river — but there’s no bridge.” The emerging compromise is basically the system saying, “Recalculating…” without sending everyone into a U‑turn.

Risks of easing up — and why timing matters

Dialing back too far could slow Europe’s competitiveness just as China and the U.S. sprint ahead on battery scale and software. That’s why the Commission’s earlier “averaging” fix was clever: it kept the 2025 and 2035 goals intact while smoothing the curve in between. Expect a fierce debate between those who want more flexibility and those who warn Europe could lose the EV race if it blinks.

What to watch next

• September 12 meeting in Brussels: von der Leyen is set to convene auto leaders — watch for signals on how far flexibility might go.
• Supply‑chain rewiring: Any moves to localize batteries and critical materials will determine whether “dependency on Asia” stays a speed bump or becomes a roadblock.
• Tariff truce or escalation: EU‑China trade friction over EVs and components could either stabilize (clearer rules, predictable costs) or intensify (higher prices, slower adoption).

Fresh perspectives and ideas

• Focus on total cost of driving: Consumers care about what they pay per month and per kilometer. Policies that bundle purchase incentives with cheaper home/work charging can do more than headline‑grabbing targets.
• Reward real-world emissions cuts: Give manufacturers and fleets extra credit for measurable reductions (e.g., verified fuel savings in hybrids used for long‑haul commuters) while still pushing hard on mass‑market EV affordability.
• Open standards, fewer bottlenecks: Accelerate interoperable charging and open software platforms so cars don’t become walled gardens — that reduces costs and speeds adoption.

Bottom line: Europe isn’t abandoning its climate destination; it’s looking for a smarter route. The industry’s August 27 plea may lead to tweaks that keep investments flowing and drivers on board — provided flexibility doesn’t become drift. The sweet spot is simple to say and hard to execute: keep EVs leading, keep costs falling, and build the charging that makes the switch feel effortless.