EU drops 2035 combustion engine ban as global EV shift faces reset

Group 1 - The European Commission plans to drop the effective ban on new combustion-engine cars from 2035, marking a significant retreat from its green policies due to pressure from the auto sector [1][2] - The proposal allows continued sales of non-electric vehicles, including plug-in hybrids and range extenders, as carmakers in Germany and Italy seek to ease regulations [2][3] - Volkswagen supports the proposal, stating it is economically sound and aligns with market conditions, while also advocating for support of small electric vehicles and more flexible targets for 2030 [3] Group 2 - The new EU targets would require a 90% cut in CO2 emissions from 2021 levels, a shift from the previous requirement for zero emissions from all new cars and vans by 2035 [5] - Automakers will need to offset remaining emissions using lower-carbon materials and synthetic or non-food biofuels, with a three-year window from 2030 to 2032 to achieve a 55% reduction in car CO2 emissions [6] - The EU's decision follows Ford's announcement of a $19.5 billion writedown due to the cancellation of several EV models, indicating a complex landscape for EVs in Europe [7][8]