A Two Swedish automotive brands, Volvo and Polestar, are spearheading an initiative to urge Brussels to adhere to the established timeline, especially as tensions escalate with Germany increasing its calls on the European Commission to reconsider the ban on new petrol and diesel vehicles by 2035.

They contend that such a decision is merely a temporary fix for the fractures within Germany’s automotive sector, arguing it would both delay the transition to electric vehicles and inadvertently grant an edge to China.

“Delaying the 2035 target is simply a terrible idea. There’s no other way to put it,” stated Michael Loescherer, the CEO of Polestar, Europe’s sole manufacturer of fully electric vehicles.

“Make no mistake, if Europe fails to spearhead this shift, other nations will take the lead.”

German Chancellor Friedrich Merz has urged European Commission President Ursula von der Leyen to reconsider the 2035 deadline. He advocated for permitting the production of new hybrid and high-efficiency internal combustion engine vehicles beyond the cutoff, noting consumer reluctance towards EVs.

“We are sending the right message to the commission with this letter,” Merz asserted, claiming the German government aims to address climate issues in a “technology-neutral manner.”

From Polestar’s transparent office in Gothenburg, Sweden, Loescherer is astounded by the current situation.

His attempts to engage in the EU’s year-long “strategic dialogue” concerning the future of the automotive industry were ignored. “I sent two letters and I’m not even sure if there was a response to the second one,” he shared.

Nearby, viewing the expansive Volvo assembly facility in Gothenburg, Håkan Samuelsson, the 74-year-old CEO of Volvo Cars, reflects on the industry landscape.

“I don’t perceive any reason to slow our progress,” he remarked.

Samuelsson compares the opposition faced by the lucrative automotive sector today to the backlash that greeted catalytic converters and seat belts half a century ago.

“If not mandated, probably 30% of our vehicles wouldn’t come equipped with seat belts, and without a requirement, we likely wouldn’t have seen the adoption of catalytic converters either,” he explained.

Volkswagen and BMW can pursue their own paths, Samuelsson noted, but easing up on electrification will only widen the gap with China.

“China will establish factories in Hungary, Slovakia, Romania… countries with low labor costs. I doubt we can isolate China from the EU through tariffs. We need to compete directly with them,” he added.

Samuelsson suggested that von der Leyen need not make an immediate decision and could defer it until closer to the deadline. “We have time. Another 10 years is at our disposal.”

Michael Bross, the Green Party’s representative in the European Parliament, remarked that Merkel’s requests would “significantly dilute” contentious EU legislation and “essentially grant a free pass” to internal combustion engines.

The Greens and the Sweden Party argue that extending the lifespan of hybrid vehicles sends a signal to consumers that electric cars aren’t necessary, thus validating the automobile industry’s stance.

Loescherer shares similar thoughts. “China will not remain static. They will assert dominance. If Brussels opts to suspend this; [target] when they state, ‘We’ll grant you five extra years, stop,’ they are genuinely jeopardizing hundreds of thousands of jobs.”

The articulate, marathon-running executive finds it ludicrous to even contemplate abolishing the 2035 target established just three years prior.

Loescherer was involved in the initial discussions that led to the EU’s 2022 resolution to phase out the sale of new internal combustion engines by 2035, a move celebrated by then-Vice President Frans Timmermans as a crucial step toward achieving carbon neutrality by 2050.

“During my tenure at Opel, I participated in these meetings and visited Brussels biannually. We debated this extensively,” said the Polestar president.

“I’m a marathon runner; I’ve completed 126 marathons throughout my life. Would I train and decide to run a half marathon because it’s difficult? No.”

Mr. Loescherer, with extensive experience as former CFO of VW and ex-CEO of Opel and Vietnamese car manufacturer Vinfast, states that Germany, amidst economic challenges, must learn to adapt quickly.

“It’s about mindset, it’s about attitude. Recently, I traveled to China and South Korea and have returned home to Germany.”

“In Germany, the sentiment is clear: everyone wants to safeguard the past, resisting change and striving to maintain the status quo. I’m German, so I can assert this with conviction. In China or the US, the focus is on, ‘What’s the next breakthrough? What’s the next initiative? What’s the next enterprise to launch?’ It’s a significant contrast. The mindsets are fundamentally different.”

Polestar, initially a racing car manufacturer in 1996, was acquired by Volvo in 2015, restructured in 2017, and relaunched as an independent EV manufacturer. Geely Automobile, Volvo’s Chinese stakeholder, now holds a majority stake.

When questioned if Chinese ownership might create unease in Brussels regarding Volvo’s stance, Mr. Samuelsson reiterated that Volvo remains a Swedish entity. “We’ve been part of Ford for 11 years, now we’re in our 14th or 15th year at Geely, and we’re experiencing significant growth. We’re listed on the Swedish stock exchange, adhering to European regulations. We’re Swedish. We are no more Chinese than we are American. We are as Swedish as Ava or IKEA.”

He emphasized that the EU must continue to expedite electrification, asserting its vital role in the future. Polestar has developed a vehicle capable of traveling 560 miles (900 km) on a single charge.

Samuelsson revealed that Volvo has five fully electric vehicles and is on the verge of introducing the EX60, an electric version of its top-selling XC60, already offering a range of 310 to 370 miles.

This approach addresses one of the three primary concerns consumers have when purchasing EVs, noted Samuelsson. The second concern pertains to charging time, which he believes should be reduced to 15 to 20 minutes—akin to the brief breaks drivers typically take for coffee, restroom, or stretching at a rest stop. “In the future, there will be no issue,” he asserted.

“The third obstacle hindering consumer adoption is price,” he continued.

“[If] we in the automotive sector can address these three necessities, the adoption rate for EVs will escalate. Therefore, I see no reason to question whether 2035 is too early. We’ve got time. Our goal should be to accelerate, not decelerate.”

Samuelsson also criticized the ongoing discourse surrounding net zero, arguing that it’s not reflective of real-world progress.

“As I follow the debates in Brazil concerning police issues, I can’t help but ponder whether all this discussion is genuinely advancing climate improvement?”

“I find myself increasingly inclined to believe that technological advancement and innovation are what we truly need to facilitate progress. Mere discussion won’t suffice.”

“Electrification is the effective solution. It benefits the environment, which is crucial. Moreover, it also appeals to customers. It’s one of the rare green innovations that consumers are enthusiastic about as well.”