Europe Won't Ban Gas Cars By 2035 After All. Now Mercedes Is Worried

"A strict 2035 endpoint is brutal, but it's also easy to understand and plan for. What likely alarms automakers and what Kallenius is referring to is the uncertainty of a rulebook that's still being rewritten. The European Commission's proposed shift from a complete ban to a 90% CO2 reduction target relative to 2021 is forcing automakers to adjust plans, but they don't yet know what to adapt to."

"Even if automakers like Mercedes-Benz say they are flexible and can deliver the powertrains the market demands, this flexibility may be hard to model amid uncertainty and could end up costing them more than a clear, straight path to full electrification by 2035. European automakers had already begun implementing long-term changes to adapt to an EU market without combustion engines. Now that the target has been softened and nuanced, further course corrections are required."

The EU shifted from a strict 2035 sales ban on new combustion cars toward a 90% CO2 reduction target relative to 2021, creating regulatory ambiguity. Mercedes-Benz lobbied for a softer approach and its CEO warned the revisions could increase uncertainty and possibly shrink the market. Automakers now face continued investment in both combustion and electric powertrains while the rulebook is rewritten and the proposed changes proceed through the legislative process. The softened target complicates planning, may raise costs, requires further course corrections, and likely results in more combustion-engined cars sold after 2035.

Read at insideevs.com