The EU wanted to ban sales of new combustion-engine cars by 2035. But sluggish EV adoption and massive competition from China have caused Brussels to soften regulation and buy time for the all-important car industry.
00:00Welcome to Buhl, a quaint town in southern Germany, with a bakery, a pedestrian zone, a gothic church and plenty of charm.
00:12But another important part of Buhl used to be its auto industry.
00:16It long brought wealth and economic stability to the region, but times have changed.
00:21We can directly feel the economic crisis. The entire region depends on the auto sector.
00:27We're at the Schaeffler plant, visiting one of Germany's largest auto suppliers.
00:33The mood isn't great. The company criticizes the EU's goal to put an end to diesel engines by 2035.
00:40What we see actually in the year 2026, the end customers are not buying as many battery electric cars in Europe as anticipated.
00:49So missing infrastructure, no conviction about the technology, and then banning one of the key technologies end customers would accept.
00:56We regard it as extremely critical as of today.
01:00This is the main production hall. Schaeffler has recently adapted and is already producing electric engines.
01:08But the company's main business is still making parts for gas and diesel engines.
01:14The idea that they won't be needed much longer sounds like a threat to many here.
01:19Volker Robel is on the employees' council and acts as a spokesperson for the Schaeffler workers.
01:27Last week we had an employees' meeting. We had a poll. About 50% of us said that they are worried about their jobs.
01:36The problem? The government wants climate-friendly cars, but they want jobs too.
01:43The auto industry makes up 7% of the EU's gross domestic product.
01:48The EU exports cars and parts worth 170 billion euros, and almost 14 million people work in the sector.
01:57The industry worries about its future post-combustion engines, as that's a technology where European companies are leading worldwide.
02:08It's a point Matthias Zink has made in Brussels too.
02:12He's not only on the board of Schaeffler in Germany, but he's also president of the interest group of European auto suppliers.
02:20Our scenario is that we should open up all the different technologies, that we should stick to the carbon reduction target, but it should be fair technical competition.
02:32For now, Brussels has received the message. The EU has tabled the matter of banning new combustion engine cars. The mayor of Buhl is pleased.
02:43I don't think we have to drop our climate goals, but we need to develop our technologies and communicate that clearly.
02:51The mayor supports electric vehicles and combustion engine cars, hoping they both will secure jobs in his town.
02:58The mayor of Buhl, the mayor of Buhl and the mayor of Buhl and the mayor of Buhl and the mayor of Buhl and the mayor of Buhl and the mayor of Buhl and the mayor of Buhl and the mayor of Buhl.
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