Newscasts - EU yields to pressure from automakers as it rethinks 2035 combustion ban

Porsche Automobil Holding SE

15/12/2025 10:33

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Source: 'Reuters - Business videos'

Description: The European Commission is expected on Tuesday to reverse the EU's effective ban on sales of new combustion-engine cars from 2035, bowing to intense pressure from Germany, Italy and European automakers struggling against Chinese and U.S. rivals. Ciara Lee reports.

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Video Transcript:

The European Commission is expected on Tuesday to reverse the EU's effective ban on sales of new combustion-engine cars from 2035. It would be in response to intense pressure from Germany, Italy, and other European automakers struggling against Chinese and US rivals. Official and industry sources say the details are still being hashed out by EU officials ahead of its unveiling but could see the effective ban pushed back by five years or softened indefinitely. The 2023 law requires all new cars and vans sold in the 27-nation bloc from 2035 to be CO2 emission-free. A revision would be the EU's biggest climb down from its green policies of the past five years. Pulling back on the ban has divided the sector. Traditional automakers like Volkswagen and Fiat-owner Stellantis have pushed hard for targets to be eased amid fierce competition from lower-cost Chinese rivals. The EV sector, however, sees it as yielding more ground to China in the electrification shift. The 2023 law was designed to accelerate a transition from combustion engines to batteries or fuel cells. Meeting the targets means selling more electric vehicles where European carmakers lag Tesla and Chinese producers like BYD and Geely.