The European automotive industry has decided not to challenge the European Union’s (EU) decision to ban fossil fuel vehicles by 2035, regardless of the outcome of the next European parliamentary elections.
What happened: The European Automobile Manufacturers Association (ACEA), led by Luca de Meoannounced Monday that the auto industry will not challenge the EU’s decision to ban fossil fuel vehicles by 2035. Reuters reported that this decision will stand regardless of the winner of the next European parliamentary elections.
Meo, who is also the CEO of Renault, RNLSY he declared: “We are not contesting 2035. Now we have to get to the point.”
He added that a total ban on fossil fuel vehicles by 2035 is “potentially feasible, but the right conditions need to be put in place.”
See also: Bearish sentiment overwhelms Tesla, Rivian stock craters on production issues, Ford pauses F-150 Lightning shipments and more: The biggest EV stories of the week
The European automotive industry is under pressure due to slowing demand for electric vehicles (EVs) and the arrival of new Chinese competitors with more affordable models. Automakers have consistently called for greater government subsidies and more widespread charging infrastructure to increase demand for electric vehicles and encourage mass adoption.
Because matter: The European automotive industry’s decision to accept a ban on fossil fuel vehicles, scheduled for 2035, represents a significant development in the global transition to electric transport. This comes at a time when the electric vehicle industry is being recognized as a key factor in the global effort to reduce dependence on fossil fuels.
However, the transition to electric vehicles is not without its challenges. The question of the source of electricity for these vehicles is critical, given that most energy in the United States is still generated by non-renewable fossil fuels. The cost implications of this transition were also highlighted in Tesla’s Master Plan 3, which highlighted the potential savings from choosing clean energy over fossil fuels.
Despite the challenges, the expected decline in demand for fossil fuels is a positive sign for the global effort to reduce dependence on fossil fuels, and the auto industry’s acceptance of the 2035 ban represents a significant step in this direction .
Read next: Carvana shares are trading like ‘an AI darling,’ short seller says: but ‘the paint will eventually peel off’
Photo by Shuttershock
Designed by Benzinga NeuroBy
Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system leverages Benzinga’s extensive ecosystem, including native data, APIs, and more to create rich, timely stories for you. Learn more.