VW CEO Questions 2035 Ban on New Combustion Engine Vehicles

Volkswagen's CEO, Oliver Blume, has raised concerns regarding the European Union's plan to prohibit the sale of new vehicles powered by internal combustion engines by 2035. He emphasized the necessity for continual checks on the realities surrounding the transition to electric mobility, suggesting that political flexibility may be essential for such a significant shift.

Speaking at the Shanghai Auto Show, Blume highlighted the need for periodic assessments that reflect the pace at which electric vehicles (EVs) are becoming more prevalent. He noted that the automotive industry must remain adaptable to changing conditions, and that the timeline for phasing out combustion engines could benefit from reevaluation.

In relation to the EU's proposal for a three-year adjustment mechanism for CO2 fleet targets from 2025 to 2027, Blume expressed his support. He stated that this approach would ensure that no emissions reductions aimed at climate protection are compromised while allowing manufacturers the necessary flexibility to meet their CO2 targets. According to him, this reflects a much-needed reality check, which should also apply to future milestones set for 2030 and 2035.

Additionally, Blume called for greater governmental support to facilitate the transition to electric mobility. He stressed that simply producing the right vehicles is not enough; the surrounding conditions must also be optimal. This includes developing adequate charging infrastructure, addressing energy costs, and providing clear incentives for adopting electric vehicles. While Germany boasts a robust charging network along major highways, Blume noted that urban areas still face significant challenges that need to be addressed.

The European Commission had recently proposed extending the timeline for automakers to comply with stricter carbon emissions regulations. Instead of the initial deadline of the end of 2025, manufacturers now have until 2028 to meet these standards. Notably, electric vehicles are categorized as emissions-free, allowing manufacturers to balance their overall fleet emissions with those of more polluting vehicles.

Major automotive companies, including Volkswagen and Renault, have expressed difficulty in meeting the tightened emissions regulations. They have advocated for more flexibility, as failing to meet EU targets could result in substantial fines. The proposed amendments by the Commission will now be subject to negotiations with the European Parliament and the 27 EU member states, with the potential for further adjustments to emission limits and the combustion engine ban.

The German automobile market has been facing challenges, with recent data from the Federal Motor Transport Authority indicating a rise in electric vehicle registrations. However, this increase has not been sufficient to counteract the overall decline in the market, which saw a 3.9% decrease in new vehicle registrations in March compared to the same month last year, totaling 253,497 vehicles.