Name: EU overturns combustion engine ban amid car industry pressure
Uploaded: 2025-12-16T14:40:40.921Z
Duration: 3 min 7 s
Description: The EU wanted to ban sales of new combustion-engine cars by 2035. But sluggish EV adoption and massive competition from China have caused Brussels to soften regulation and buy time for the all-important car industry.

The EU wanted to ban sales of new combustion-engine cars by 2035. But sluggish EV adoption and massive competition from China have caused Brussels to soften regulation and buy time for the all-important car industry.

Bühl

The European Union has decided to delay its proposed ban on new combustion engine vehicles, responding to concerns from the automotive industry about economic stability and job security. Companies like Schaeffler, a major German auto supplier, have cited lower-than-expected electric vehicle sales and insufficient infrastructure as reasons for caution, with many workers expressing anxiety about their future employment.

The auto industry represents a significant portion of the EU's economy, accounting for 7% of GDP and employing nearly 14 million people. Industry representatives have called for a technology-neutral approach to achieving carbon reduction targets, and local officials in Germany support both electric and combustion engine vehicles to balance climate goals with economic needs.

EU overturns combustion engine ban amid car industry pressure

Welcome to Buhl, a quaint town in southern Germany, with a bakery, a pedestrian zone, a gothic church, and plenty of charm. But another important part of Buhl used to be its auto industry. It long brought wealth and economic stability to the region, but times have changed. We can directly feel the economic crisis. The entire region depends on the auto sector. We're at the Schaeffler plant, visiting one of Germany's largest auto suppliers. The mood isn't great. The company criticizes the EU's goal to put an end to diesel engines by 2035. What we see actually in the year 2026, the end customers are not buying as many battery electric cars in Europe as anticipated. So missing infrastructure, no conviction about the technology, and then banning one of the key technologies end customers would accept, we regard as extremely critical as of today. This is the main production hall. Schaeffler has recently adapted and is already producing electric engines. But the company's main business is still making parts for gas and diesel engines. The idea that they won't be needed much longer sounds like a threat to many here. Volker Roebel is on the Employees' Council and acts as a spokesperson for the Schaeffler workers. Last week we had an employees' meeting. We had a poll. About 50 percent of us said that they're worried about their jobs. The problem? The government wants climate-friendly cars, but they want jobs too. The auto industry makes up 7 percent of the EU's gross domestic product. The EU exports cars and parts worth €170 billion, and almost 14 million people work in the sector. The industry worries about its future post-combustion engines, as that's a technology where European companies are leading worldwide. It's a point Matthias Zink has made in Brussels too. He's not only on the board of Schaeffler in Germany, but he's also president of the interest group of European auto suppliers. Our scenario is that we should open up all the different technologies, that we should stick to the carbon reduction target, but it should be a fair technical competition. For now, Brussels has received the message. The EU has tabled the matter of banning new combustion engine cars. The mayor of Buhl is pleased. I don't think we have to drop our climate goals, but we need to develop our technologies and communicate that clearly. The mayor supports electric vehicles and combustion engine cars, hoping they both will secure jobs in his town.

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