Von der Leyen is scheduled to convene with automotive executives on September 12 to address these mounting challenges, a meeting that could reshape the sector's roadmap toward sustainability. The letter, penned by Mercedes-Benz CEO Ola Kaellenius and Matthias Zink, CEO of powertrain and chassis at Schaeffler AG, reaffirms the industry's dedication to the EU's overarching net-zero emissions objective by 2050. However, the executives argue that the path forward requires flexibility beyond the rigid mandates currently in place, which include a 55% reduction in CO2 emissions for cars from 2021 levels by 2030, 50% for vans, and a complete phase-out of emissions for both by 2035.
The executives highlighted a cascade of hurdles facing EU manufacturers: near-total reliance on Asian suppliers for critical battery components, patchy and uneven charging infrastructure across member states, elevated production costs compared to global rivals, and the threat of punitive U.S. tariffs on imported goods. These factors, they contend, have eroded the competitiveness of European automakers, making compliance with the strict timelines increasingly untenable. "Meeting the rigid car and van CO2 targets for 2030 and 2035 is, in today’s world, simply no longer feasible," the letter states, emphasizing that legal mandates and financial penalties alone will not suffice to drive the necessary technological and market shifts.
Current market data underscores the gap between policy ambitions and reality. Electric vehicles currently hold about 15% of the new car market in the EU, while the share for vans lags even further at 9%, reflecting slower-than-expected adoption rates amid consumer hesitancy and infrastructure deficits. The letter advocates for a more diversified approach to decarbonization, urging the inclusion of plug-in hybrids, range extenders, highly efficient internal-combustion engines, hydrogen technologies, and decarbonized synthetic fuels alongside pure EVs. "EVs will lead the charge, but there must also be space for [plug-in] hybrids, range extenders, highly efficient internal-combustion engine vehicles, hydrogen and decarbonised fuels," it reads, pushing back against a singular focus on battery-electric propulsion.
The call for review extends to heavier vehicles as well, with the association leaders requesting a reassessment of CO2 regulations for heavy-duty trucks and buses to align with practical implementation challenges. This comes on the heels of a March decision by the European Commission to grant automakers additional time to meet interim 2025 emission reduction targets, a concession that has fueled broader debates within the EU. Members of von der Leyen's centre-right European People's Party (EPP) have gone further, advocating for the outright withdrawal of the 2035 combustion engine ban, citing risks to jobs, innovation, and energy security in an era of geopolitical tensions.
The letter's release amplifies growing tensions within the EU's Green Deal framework, which has positioned the bloc as a global leader in climate action but now faces scrutiny over its feasibility for energy-intensive industries like automotive manufacturing. With China dominating the EV supply chain and producing vehicles at lower costs, European firms warn of a potential exodus of production and talent unless policies adapt. Industry analysts suggest that the September 12 summit could lead to revised targets or incentives, such as subsidies for domestic battery production or harmonized infrastructure investments, to bolster the sector's resilience.
As the EU navigates these crossroads, the stance from Kaellenius and Zink represents a unified front from key players in the €300 billion-plus automotive industry, which employs millions across the continent. Their plea for pragmatism arrives at a critical juncture, potentially influencing not only environmental policy but also the bloc's economic competitiveness on the world stage.