Overview
- The European Commission’s proposal would replace the 2035 zero‑emission requirement with a 90% fleet CO₂ cut versus 2021, with remaining emissions offset through EU green steel and low‑carbon fuels, and it still requires approval by Parliament and member states.
- Member countries would set binding electrification targets for company cars; reports indicate Germany would need 54% zero‑emission new fleet cars by 2030 and 95% by 2035, primarily via tax policy, with smaller firms exempted.
- A new M1E category for small, EU‑assembled electric cars (up to 4.20 meters) would earn 1.3 ‘supercredits’ toward compliance, an incentive that could also help manufacturers offset emissions from limited combustion sales.
- Industry and political reactions are split: the VDA calls the package ineffective and ‘fatal’, BMW’s Oliver Zipse condemns fleet quotas, CSU leader Markus Söder labels the plan a ‘catastrophe’, while Finance Minister Lars Klingbeil warns carmakers the future is electric and Transport Minister Patrick Schnieder backs added flexibility.
- Volkswagen says its small‑car lineup will be electric‑only going forward, with ID. Polo and ID. Cross due in 2026 and ID. Every1 in 2027, even as the EU proposal heads into negotiations that could still alter details.