By Philip Blenkinsop STRASBOURG, Dec 16 (Reuters) - The European Commission unveiled a plan on Tuesday to drop the EU's effective ban on new combustion-engine cars from 2035 after pressure from the region's auto sector, marking the bloc's biggest retreat from its green policies in recent years. The move, which still needs approval from EU governments and the European Parliament, ​would allow continued sales of some non-electric vehicles. Carmakers in regional industrial powerhouse Germany and in Italy h ...

Core Insights - Porsche has delayed the launch of its new electric vehicle (EV) due to weak demand, shifting focus back to petrol and diesel engines [1][2] - Volkswagen, Porsche's parent company, anticipates a €5.1 billion hit to its operating profit this financial year due to these delays [2][5] - The automotive industry is undergoing significant changes, prompting Porsche to realign its product strategy [3][6] Company-Specific Summary - Porsche's new EV series launch has been scrapped, with existing combustion engine models remaining available for a longer period [1][4] - The company is recalibrating for long-term success despite short-term financial impacts, with a revised forecast for operating profit margins for 2025 now between 2% to 3% [6] - Volkswagen plans to write down the value of its shares in Porsche by €3 billion following the luxury carmaker's revised long-term plans [5] Industry Context - European car manufacturers are facing challenges from competition with Chinese EV makers like BYD and financial impacts from import tariffs [7] - The automotive industry is described as operating in a "highly volatile environment," with calls from industry leaders for the EU to relax stringent emission targets [8] - The EU's plan to ban the sale of new petrol and diesel cars by 2035 is viewed as unachievable by carmakers [9]