In a letter sent to EU Commission President Ursula von der Leyen, Mercedes-Benz, Schaeffler, and the heads of industry groups ACEA and CLEPA warned that current vehicle CO₂ targets, including a 100% cut for cars by 2035, are no longer feasible.

Instead of only pushing battery-electric vehicles (BEVs), they’re asking the EU to leave room for hydrogen-powered vehicles, plug-in hybrids and range extenders, highly efficient combustion engines, and e-fuels or biofuels.

The letter, signed by Mercedes-Benz CEO and ACEA President, Ola Källenius, and Schaeffler executive and CLEPA President, Matthias Zink, argued that Europe is disadvantaged by reliance on Asian batteries, slow charging rollout, higher production costs than China, and US tariffs on exports.

The two association chiefs also argued that strict legal mandates and financial penalties alone would not deliver the transition, underscoring the need for supportive infrastructure and flexibility to accommodate multiple technologies.

The letter added that CO₂ regulation on heavy-duty trucks and buses must also be reviewed.

Under current EU mandates, carmakers must cut CO₂ emissions from new cars by 55% and vans by 50% by 2030, from 2021 levels, reaching 100% by 2035. Heavy-duty vehicles must achieve a 45% cut by 2030, 65% by 2035, and 90% by 2040 under targets revised in early 2024.

However, the hydrogen mobility sector itself is currently under pressure, with high costs and refuelling hurdles driving some major OEMs out of the market, such as Stellantis.