France and Germany want to loosen Europe’s 2035 car emissions rules while linking public support more closely to European production. In this ev.news Policy special, Martyn Lee explains the competing proposals, what they could mean for combustion engines and plug-in hybrids, and why a 90% emissions cut does not mean 90% electric car sales. EU law has not changed.
Electric car demand is growing, but Europe’s manufacturers and suppliers face pressure on earnings, jobs and their business in China. We examine BMW’s progress on EV margins, Volkswagen’s efforts to reduce development costs and the limits of tariffs. Leapmotor’s production in Spain illustrates how Chinese technology can support European factory jobs while raising questions about ownership, expertise and how much manufacturing value stays locally.
We also look at the gap between plug-in hybrids’ official and on-road emissions, the consequences for national climate commitments and what European production requirements could mean for buyers. Keeping combustion cars on sale may help finance the transition. The test is whether manufacturers use that time to build competitive electric cars profitably and retain skilled work.
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