Car boss warns China ‘will take over’

European car makers fighting for their future are divided by the role of electric vehicles.

The European car industry has been split by a looming law that will stop them selling combustion-powered cars after 2035, amid warnings that China will “take over” European roads if governments do not take action.

Major manufacturers such as Volkswagen and Mercedes are pushing for the European Union to hold off a ban on the sale of any cars powered by petrol or diesel fuel including hybrid and plug-in hybrid machines.

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Porsche wants to keep selling combustion-powered cars such as the 911. Picture: Supplied

The Responding to lobbying by the his car industry, German chancellor Friedrich Merz reportedly called for a change to allow “flexible and realistic regulation open to all technologies” including hybrid-powered cars for the foreseeable future.

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The German car industry, including VW, has lobbied against an EV-only future. Photo: Ronny HARTMANN / AFP

Critics of Europe’s EV-only policy say it will open the door to a flood of cut-price, mass-produced Chinese cars that could kill European manufacturers such as VW, Peugeot and Fiat.

While companies such as Porsche are backing away from EVs and investing in synthetic biofuels, brands such as Polestar are warning that the EU must move on from combustion-powered cars of any kind.

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Polestar chief executive Michael Lohscheller. Picture: Supplied

Speaking with The Guardian, Polestar chief executive Michael Lohscheller said “pausing 2035 is just a bad, bad idea. I have no other words for that”.

“If Europe doesn’t take the lead in this transformation, be rest assured, other countries will do it for us … The Chinese will not pause. They will take over.”

In a further statement provided by Polestar, Lohscheller said “the combustion engine is a technology of the past”.

Chinese-made MG cars ready for export overseas. Photo: AFP / China OUT

“EVs are already cutting emissions in the real world. This technology sits in driveways today, not in labs waiting for a breakthrough …

“Staying the course creates prosperity for decades. U-turns only extend outdated industries while the rest of the world accelerates ahead.”

Germany’s Handelblatt reports that the European Commission will recommend the EU back down from its EV-only stance, quoting European Commissioner for Sustainable Transport, Apostolos Tzitzikostas, as saying “We want to stick to our goals, but we must take all recent geopolitical developments into account”.

“We must ensure that we do not jeopardise our competitiveness while simultaneously helping European industry maintain its technological edge.”

Ford’s electric F-150 is a slow seller, but the petrol Raptor is a hit. Photo: Supplied

Europe’s wrestling match comes as the US winds back increasingly stringent fuel efficiency requirements set during the Biden Administration.

The change was welcomed by car makers such as Ford, with chief executive Jim Farley telling ABC News that “as America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities”.

Jim Farley, President and CEO of Ford Motor Company. Photo: BILL PUGLIANO / GETTY IMAGES NORTH AMERICA

“We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability,” he said.

“This is a win for customers and common sense.”

Environmentalists criticised the Trump Administration’s decision, saying it will lead to increased fuel consumption and poor climate outcomes.