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EU to allow 'flexibility' for struggling auto sector
January 2026
|Automotive Exports
The European Union's industry commissioner pledged to grant greater "flexibility" to the continent's hard-pressed automakers, raising expectations that the bloc may soften its planned 2035 phaseout of combustion-engine car sales. Faced with complaints from Europe's top automakers that the ban will add to their woes as the electric transition is moving more slowly than expected, the EU agreed in September to fast-track a review of the policy. The bloc is expected to announced relief measures for the region's auto sector, also hit hard by high costs and fierce Chinese competition, next month.
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Speaking at an auto industry event in the German city of Stuttgart, EU industry chief Stephane Sejourne said "Europe is ready to activate all levers to make the European automotive industry successful."
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