(Bloomberg) — Volvo Car AB and dozens of industrial manufacturers urged Brussels to stick to a plan to halt sales of new combustion-engine cars starting in 2035. But Europe’s biggest automakers are keeping quiet.
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Fifty companies called on the European Union to keep the policy, according to a declaration shared with Bloomberg News. They argued that the sector needs certainty in order to invest and support to meet EU goals, but no backtracking.
“Electrification is the single biggest action our industry can take to cut its carbon footprint,” said Jim Rowan, Volvo’s chief executive officer. “The 2035 target is crucial to align all stakeholders on this journey and ensure European competitiveness.”
Rivian Automotive Inc. and Uber Technologies Inc., as well as IKEA of Sweden AB and energy company Iberdrola SA, were among the companies pressing Brussels to stay the course.
The EU’s emissions targets for cars have come under fire in recent months as manufacturers grapple with a slowdown in sales, particularly of electric models. For the first time, Volkswagen AG is considering shuttering factories, while the industry lobby warned of multibillion-euro fines for missing 2025 carbon goals.
Volvo itself recently abandoned a target to sell only fully electric vehicles by the end of this decade, walking back its EV ambitions due to waning demand.
Transportation is the only sector to see its emissions grow in Europe during the last 30 years — a trend that needs to reverse rapidly if the bloc is to meet its objective of a 55% cut this decade and net zero by midcentury.
Europe vs China
Proponents of the effective ban on combustion engines say the EU is behind the likes of China in producing EVs — especially mass-market vehicles — and must catch up. They argue that European automakers have delayed shifting to new technologies for too long, relying instead on sales of traditional autos.
Europe’s largest carmakers — such as Volkswagen, BMW AG and Stellantis NV — didn’t sign the declaration to the EU. The latter slashed its profit margin forecast for the year on Monday, sending shares plunging as much as 14% in Paris.
Italy, meanwhile, has ramped up pressure on the bloc to review the target.
Prime Minister Giorgia Meloni said this month the policy was symptomatic of the EU’s “self-destructive approach” to rule-making. The country wants Brussels to bring forward a planned 2026 review to early next year and allow an exemption for biofuels.
–With assistance from Lars Paulsson.
(Updates with Stellantis share decline in ninth paragraph, following company forecast.)
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