EU Commission to Reverse Effective 2035 Combustion Engine Ban, EPP’s Weber Says
The European Commission on Tuesday will propose rule changes that reverse previous plans for an effective ban on selling new cars with combustion engines in the 27-nation bloc from 2035, a senior EU lawmaker said on Friday. According to Reuters,the comments, which still need to be confirmed by Brussels in an announcement slated for December 16, mark a key victory for Germany, the bloc’s top economy, in its efforts to protect its most important industry, which has come under intense pressure due to growing competition and trade barriers. “Next Tuesday, the European Commission will be putting forward a clear proposal to abolish the ban on combustion engines,” Manfred Weber, president of the largest party in the European Parliament, EPP, said at a press conference in Heidelberg, Germany. He added it should be left to markets and consumers how climate targets are achieved. German Chancellor Friedrich Merz, who also attended the press conference, said that electric mobility remained the main path but that there would be other technologies, such as synthetic fuels, towards carbon neutrality. “And that is precisely what we mean by technological openness. This now gives the industry real planning security,” Merz said. Click here for the full story.
How 8 Automakers Are Working Together to Challenge Tesla’s Charging Advantage
Demand for electric vehicles has slowed dramatically. Federal tax incentives have been canceled. Grandiose EV ambitions are being postponed or scaled back. It’s in this moment that eight of the world’s largest automakers are hitting the accelerator on their joint effort to build a nationwide network of convenient, reliable EV chargers rivaling Tesla’s. According to Automotive News, Ionna, the startup those companies formed, is shooting for 30,000 charging bays across North America by the end of 2030. Its stations, branded as Rechargery, will give EV drivers easy access to grocery stores, coffee shops, restaurants and other amenities — along with the confidence that they won’t get stranded on a road trip with a dead battery. Ionna and its founding automakers — BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, Stellantis and Toyota, all of which invested an equal, amount — say they want to build the nation’s best charging network, even if not necessarily the largest. Some point to Tesla’s Superchargers as the standard to meet or exceed. “Tesla, give them full credit, has done a great job of providing widespread and very high-quality charging services.” said Gary Robinson, vice president of sustainability and business development at American Honda Motor Co. Click here for the full story.
Automakers Push to Preserve USMCA as Trump Floats Bilateral Deals
Automakers and suppliers are pushing the White House to preserve the U.S.-Mexico-Canada Agreement as President Donald Trump signals he may abandon the trilateral deal in favor of separate agreements with each country. “We want to maintain USMCA,” said Jennifer Safavian, CEO of Autos Drive America. “While there may need to be tweaks here and there, I think the general consensus is that USMCA is important and we want to make sure it continues.”The Office of the U.S. Trade Representative held hearings in Washington Dec. 3-5, seeking input from industry stakeholders about how the USMCA is functioning, reports Automotive News. Industry groups representing the Detroit 3, foreign automakers and suppliers were among those to testify.Automakers and suppliers advocated for the USMCA to remain in place as a trilateral agreement, even if significant changes are made to it. “It was important to get the message out on the significance of the deal and reiterate that the USMCA is important, especially for the integrated supply chains in North America,” said Jennifer Smith-Veluz, an international trade attorney at Detroit law firm Butzel. “It needs to be preserved on a trilateral basis because of the way those supply chains work.” Click here for the full story.
Volvo Offers Software to Rivals in Reversal from Coding Delays
Volvo Car AB is looking for partnerships for its new central software stack that’ll run on all of its future electric models, a sign the carmaker has overcome earlier coding glitches that delayed vehicle launches and sparked recalls. The manufacturer is open for pacts including licensing of the “superset” system that operates via a handful of high-performance computers, according to Volvo’s Chief Engineering & Technology Officer Anders Bell. While a number of carmakers including Volkswagen AG have struggled to move to their own centralized software, those that have managed in-house can potentially tap new revenue streams. “I am very open to collaborations in this area. The phones are on and the mailboxes are active,” Bell said in an interview with Bloomberg. Carmakers, with a history of deep rivalries and spotty success on partnerships, have started to cooperate more on costly new technologies. This follows misses on developing in-house software systems, prompting model delays at the likes of VW and Stellantis NV. VW last year turned to Rivian Automotive Inc. for a $5.8 billion technology tie-up for Western markets, after mounting setbacks in its Cariad software unit. Click here for the full story.
US New-Vehicle Inventory Holds Steady as Automakers Brace For 2026
New-vehicle inventory in the U.S. entered December on a steady footing as automakers navigate softening demand and year-end uncertainty. Inventory began the month at 3.01 million units, a 6 percent decline from early December 2024, according to Cox Automotive’s vAuto Live Market View. The market holds a 90-day supply, only slightly below year-ago levels, with automakers balancing production and demand as they prepare for 2026. The industry continues to face affordability challenges, yet average listing prices remain firm. New-vehicle prices averaged $49,422 on Dec. 1, up 1.4 percent year over year, reports CBT News. Despite ongoing discussions about more affordable subcompact cars, large SUVs and trucks continue to dominate sales and inventory movement. Automakers are maintaining price discipline even as year-over-year demand weakens, signaling cautious planning rather than aggressive discounting. Inventory levels have held stable for several months, rising only slightly from 2.97 million units in early November. Sales in November improved compared with October, keeping days’ supply at 90. This trend suggests a disciplined approach that avoids the overproduction seen in past cycles and positions automakers to adjust pricing strategies as needed in 2026. Click here for the full story.
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