At a summit of auto industry leaders in Brussels on Friday, European Commission President Ursula von der Leyen said the EU would fast-track its planned review of a 2035 internal combustion ban in light of the current difficulties facing the European car industry.

In 2022, it was decided that no new cars with internal combustion engines would be registered in the EU from 2035, with the goal of reducing emissions.

European automakers are calling for a review of the planned new regulations, including a relaxation of emissions requirements on new vehicle models.

In response to demands from carmakers to relax the total ban on internal combustion engines by using other low-emission technologies and hybrid cars after 2035, von der Leyen wrote on X: "We will combine decarbonization and technological neutrality."

Speed bumps for European carmakers

In an August letter, carmakers cited challenges to production and sales of electric vehicles (EVs) in Europe, including dependency on Asia for batteries, lack of charging infrastructure, high manufacturing costs and US tariffs.

European carmakers are also facing stiff competition from cheap and abundant Chinese EVs.

In a joint letter on behalf of the European auto industry, Mercedes-Benz chief Ola Kaellenius said, "We are being asked to transform with our hands tied behind our backs," adding that the 2035 target was "no longer feasible."

The letter, also signed by Matthias Zink of the automotive parts supplier Schaeffler, called for the EU to boost the EV market with consumer incentives like tax breaks.

Meanwhile, the German Association of the Automotive Industry (VDA) said the European Commission was "still acting too indecisively and not strategically enough," on the planned phase-out of internal combustion engines.

VDA President Hildegard Muller wrote in a statement that "rigid CO2 regulation jeopardizes competitiveness and thus the transformation of the entire industry. Our companies have made this clear once again today."

"The EU must now deliver, and the solutions and options are all on the table. Further hesitation and procrastination cannot be tolerated," she added.

Environmental groups and EV industry representatives wrote a letter asking Von der Leyen to "stand firm" on the 2035 total phase-out, arguing it will better drive innovation and investment.

Edited by: Dmytro Hubenko