Europe

• After a lot of lobbying, the European Union looks set to roll back its 2035 gas car ban.
• The new rules are a win for struggling automakers, but still require a 90% fleet-wide CO2 emissions reduction by 2035.
• European and U.S. automakers are already behind in the EV race, so slowing down introduces its own risks.

Europe will reverse its plan to ban sales of new combustion-engine vehicles by 2035, a senior European Parliament member confirmed Friday. With the official announcement slated for next week, that marks the end of a long, bitter dispute as to whether the European Union will follow the U.S. lead in rolling back emissions requirements, or charge ahead like China.

The debate over whether this is the right move, however, will rage on. Western manufacturers have been surprised and battered by slower-than-expected EV sales, collapsing market share in China and hurdles across the Atlantic in the U.S. These manufacturers have argued that forcing unprofitable EVs on consumers may worsen their financial positions and leave them globally uncompetitive. The EU has seemingly bought that argument.

“Next Tuesday, the European Commission will be putting forward a clear proposal to abolish the ban on combustion engines,” Manfred Weber, the leader of the largest party in the European Parliament, said at a press conference in Heidelberg, Germany, per Reuters. He put the onus on customers to buy efficient products, rather than expecting manufacturers to build products customers reportedly don’t want.

I’d argue that’s a simplistic and short-sighted view of the situation; the rise of Tesla, BYD and others proves that people absolutely do want the hassle-free ownership experience and simplicity of an EV. They just won’t pay a major premium for it, and Western automakers’ supply chain focus on gas cars has made it hard for them to offer competitive EVs at comparable prices.

Germany has a world-beating EV on its hands with the BMW iX3. Now it has to win over shoppers.

Photo by: BMW

But that’s already changing: Mercedes, BMW and others are introducing EVs that best their gas counterparts in nearly every way. The good news is, as Weber implies, consumer preference for lower running costs, better tech features and smooth power will drive buyers into EVs, anyway. But incentive programs and long-term government policies can help nudge a risk-averse and short-sighted-businesses into actually investing for the future.

The rollback doesn’t give automakers a free pass, though. It will still reportedly require a 90% fleet-wide reduction in CO2 emissions by 2035, which is already a major win for the climate. And because European buyers have already shown more interest in EVs, and because climate change denialism is not as well-financed there, I wouldn’t expect any of this to halt the transition toward EVs. But just like the United States, Europe wants to get there without destroying its home-grown automakers in the process.

That’s a fair goal in a world where Chinese EVs have comfortably surpassed the best that the U.S., Europe, Japan and South Korea can offer. As it stands, European and U.S. automakers cannot keep up their younger, nimbler competitors. And while I understand the impulse, it’s hard to see how slowing down will fix that problem.

Contact the author: Mack.Hogan@insideeevs.com