BRUSSELS (Reuters) – The European Commission will offer to give car manufacturers three years to achieve the new CO2 emissions objectives under penalty of being inflicted fines, in order to avoid the 2025 ax.

The president of the European executive, Ursula von der Leyen, said at a press conference on Monday that the objectives in terms of CO2 emissions remained unchanged but announced a relaxation concerning the compliance which will be done on three years instead of one application year by year.

“The objectives remain the same. They must fulfill these objectives, but this means that the industry has a little more time to see coming,” said Ursula von der Leyen, adding that the proposal must still be approved by the EU governments and the European Parliament.

Sources within the industry have declared that the evaluation of respect for the objectives would be based on the average for the period 2025-2027.

The European Commission must unveil its Automobile Action Plan on Wednesday aimed at supporting the electrification of the fleet in the European Union (EU) and strengthening European manufacturers in the face of competition, especially Chinese actors.

Already struck by factories and job cuts, including 54,000 among equipment manufacturers last year, the European automotive industry is also faced with uncertainties on growth, new threats of American customs duties and persistent dependence on China for several critical minerals and for batteries, at the heart of electric technology.

In this context, car manufacturers were concerned to have to pay significant fines due to the tightening of European rules on CO2 emissions.

On the stock market, the announcement increased the main European manufacturers: around 2:35 pm GMT, Volkswagen takes 3.6 %%, BMW gained 1.9%, Renault advances by 2.7%and Stellantis of 1.72%.

The Stoxx 600 index in the automotive sector earned 1.7%.

(Written by Philip Blenkinsop and Bart Meijer, Pauline Foret, edited by Sophie Louet and Blandine Hénault)

Copyright © 2025 Thomson Reuters