Smaller vehicles that do not need to meet the same safety requirements as existing cars could be Europe's answer to maintaining its automotive industry.
Unlike carmakers, however, truckmakers can comply with the emission regulations by improving diesel efficiency and using regulatory flexibilities rather than selling large volumes of electric vehicles.
German Chancellor Friedrich Merz used the opportunity to rally against planned EU-wide restrictions that are set to ban manufacturers from selling new combustion-engine vehicles from 2035.
“We need a reality check. Otherwise we are heading at full speed against a wall,” Mercedes chief executive Ola Kaellenius told the Handelsblatt business daily of the 2035 goal, adding that Europe’s car market could “collapse” if it goes ahead.
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