End of the 2035 ban on internal combustion cars: for Stellantis it's still "not enough".

For months, the European automotive industry has been holding its breath. On December 16, Brussels finally lifted the veil on the long-awaited revision of its automotive strategy. And the message is clear: the internal combustion engine will not disappear completely by 2035. Officially, the objective remains climate neutrality, but in practice, the European Commission is revising its copy and introducing unprecedented flexibility. A major inflexion... but not enough to make a difference. Stellantis.

Symbolic break with all-electricity

Until now, the trajectory has been crystal-clear: from 2035, only new zero-emission cars should be allowed to be sold in the European Union. This dogma has now been relaxed. The new automotive package marks a profound change: the target is no longer zero emissions, but a 90 % reduction in CO₂ tailpipe emissions.

The remaining 10 % can be offset by credit mechanisms, through the use of renewable fuels (biofuels and e-fuels) or low-carbon materials, such as "green" steel produced in Europe. In concrete terms, this opens the door, even after 2035, to plug-in hybrids, range-extenders, light hybrids and certain internal combustion engines, alongside electric and hydrogen. Brussels is now adopting a technology-neutral approach, long called for by several member states and a large part of the industry.

A more gradual transition to avoid industrial shock

The Commission is attempting to walk a fine line: maintaining a strong signal in favor of zero-emission vehicles while avoiding a brutal industrial shock. The automotive industry remains a major economic pillar in Europe, with millions of jobs and a complex value chain. With this in mind, a number of adjustments have been made to make the timetable more flexible:

• introduction of a reserve and borrowing mechanism between 2030 and 2032, enabling automakers to smooth out their emissions targets over three years;
• lowering the emissions reduction target for light commercial vehicles to -40 % by 2030, compared with -50 % previously;
• targeted flexibility for trucks too.

The EU implicitly acknowledges that electrification is progressing more slowly than expected, particularly in the commercial vehicle sector and in certain regions.

Corporate fleets and "Made in Europe" at the heart of new strategy

Another key lever is demand. Brussels is clearly banking on corporate fleets, which account for some 60 % of European vehicle registrations. Binding national targets will be set for large companies, with priority given to zero- or low-emission vehicles. A detail that is far from insignificant: public aid will only be granted for vehicles produced in the European Union. This is a deliberate attempt to protect the industry from competition from outside Europe, notably from China, and to strengthen the continent's strategic autonomy.

Batteries, simplification and small electric cars

The automotive package is not limited to CO₂ standards. Brussels is also announcing a €1.8 billion "Battery Booster", including €1.5 billion in the form of zero-interest loans for European cell producers. The aim is clear: to reduce dependence on Asian players and contain costs. On the regulatory front, Brussels is promising around 700 million euros in annual savings thanks to simplified procedures, notably for Euro 7 tests and electric commercial vehicles.

Finally, a new sub-category of small electric cars (less than 4.20 m) has been created, giving access to supercredits and targeted subsidies. This measure is of direct benefit to manufacturers heavily exposed to city cars.

For Stellantis, too timid a shift

On paper, this revision looks like a victory for the industry. In fact, Stellantis considers the changes to be largely insufficient. The group, headed by Antonio Filosa, reacted bluntly, saying that Brussels' proposals "are not adequate to support the energy transition while preserving a strong and accessible European automotive industry".

The main sticking point concerns light commercial vehicles, for which Stellantis denounces the absence of a genuine industrial roadmap. This is a strategic segment for the Group, but also one of the most exposed to the costs of the transition. Another major criticism is the lack of flexibility with regard to intermediate targets for passenger cars up to 2030, which Stellantis believes is essential to absorb a transition that is still costly and technologically complex.

Accessibility and social risk at the heart of the debate

Even the softening of the 2035 is not totally convincing to the group. The move from 100 % zero-emission to -90 % is welcomed as a positive signal, but Stellantis warns that, as designed, the scheme does not guarantee the production of vehicles that are genuinely accessible to the majority of European customers. Behind this criticism lies a central issue: the transition must not become a social problem. Without affordable models, the risk is to break up the mass market and exclude some consumers.

A reform far from complete

Brussels promises a complete revision of the regulation in 2032. Until then, the balance remains fragile. For Italy, through the voice of Adolfo Urso, this revision is a "breach in the wall of ideology", but still far from a structural change. For Stellantis, the message is crystal-clear: the internal combustion engine has been saved in principle, but the European automotive industry is still in danger in substance. Without rapid corrections on commercial vehicles, intermediate targets and a clear definition of the "European product", the transition is likely to remain more of a brake than a driver. The political and industrial battle over the European automobile is far from over. And the 2035 issue, which many believed to be closed, has probably only just begun.