European Union confirms 2035 ban on internal combustion engines
As the European Union (EU) maintains its ban on the sale of new internal combustion engine (ICE) vehicles by 2035, we wondered aloud what this might mean for manufacturers here in the northern market. -American. Would this potentially force a proxy ban on new ICEs from European manufacturers for the US, Mexico and Canada? We asked major European manufacturers to see what this means and what might happen to their North American offerings in the future.
While some states will enforce a ban on new ICE sales here in the United States around 2030 to 2040, this is not yet a national rule. (Remember, executive orders aren’t law, they’re just treated as such by national agencies until the Supreme Court or a new president says not to. Usually.) Honestly, due From the deep roots of the Big Oil lobby in the United States, a total gas- or diesel ban probably won’t happen for decades, if at all. Meanwhile, the EU and its 27 member countries have decided that a ban on sales of new ICEs will be enforced by 2035 and, yes, that would include sales of new hybrid vehicles according to France 24. In the EU, 12% of carbon dioxide emissions come from owning a private vehicle, while 25% of CO2 comes from all transport. Now that this app is firmly in place, let’s see what it means for European manufacturers who sell their products here:
First of all, no need to worry about a “proxy ban” or similar ripple effect of the EU decision. When looking at the major European manufacturers selling vehicles here in North America, most are already planning to eliminate ICE vehicles from their US lineups by then or even sooner in some cases. The most obvious is the Volkswagen Group, which includes Audi, Porsche and its namesake, VW. Audi, in particular, is looking to stop selling ICE vehicles in the United States by 2030 or so. VW, on the other hand, produces nearly 90% of its vehicles sold in North America in our region, including the ID4 all-electric SUV. This would mean that, even if VW had no intention of switching to electric vehicles here in the United States, the EU decision would not impact our market. Even so, VW plans to reduce its ICE production from 2033 to 2035, and 2026 is when VW will introduce its latest new combustion engine.
BMW kind of mirrors what VW told us, with a standard caveat that the company isn’t speculating on future products – ICE ban 2035 or not. Anyway, BMW also has facilities producing vehicles locally here in North America with plants in Spartansburg, SC (X-Series SUVs) and San Louis Potosi, Mexico (2-Series, 3-Series and M2 to come). These are in addition to 29 other plants in 13 other countries, so BMW has plenty of flexibility for market adjustments. BMW plans to go fully electric by 2030 globally and have at least 12 fully electric vehicles on sale globally by 2023, covering around 90% of their typical segments. This means that, just like VW, BMW was planning to go all-electric before the EU’s ICE ban in 2035 even became an issue for global production and sales in the US. Same as Mercedes-Benz, which builds also many cars here in America, but which has also long been committed to introducing a phantom electric range under the “EQ” banner.
By and large, European manufacturers had already started planning for an all-electric future before the EU finally made it official on their own turf. Europe and its transport manufacturers are entering their last decade and a half of new ICE vehicles, including hybrids. Although this European ban on ICE in 2035 will not have a direct effect on the American market, the decision to switch to electric vehicles even in North America was also already in the works by European manufacturers. Leaving aside the idea of an EV mandate here in America, American automakers are thinking along the same lines as their European counterparts, and many are planning to go all-electric around the same time. Their promises aren’t ironclad, but that’s pragmatic – if consumer preferences limit the reach of electric vehicles here, whether it’s because we don’t have an ICE ban or otherwise, these automakers won’t be not totally caught off guard.