# Stellantis CEO calls for talks to soften EU’s 2035 fossil-fuel car ban Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Stellantis CEO Calls for Hybrid Models in EU's 2035 Meta Description: Stellantis CEO Carlos Tavares urges EU to reconsider banning fossil-fuel cars by 2035, highlighting the essential role of hybrid models in transition to URL: https://financedigest.com/stellantis-ceo-calls-for-talks-to-soften-eus-2035-fossil-fuel-car-banhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-17t162725z1lynxmpei9g0o4rtroptp4autoshow-paris-stellantis-1736815008262-compressed.jpg) By Gilles Guillaume PARIS (Reuters) – The European Union’s proposed 2035 ban on fossil-fuel cars should be renegotiated to give hybrid models a greater role in the transition to zero-emission vehicles, Stellantis chief executive Carlos Tavares said on Monday. “It’s essential,” Tavares said during a news conference at the Paris Motor Show, when asked if talks on the ban were needed. The dogmatic decision that was taken to ban the sale of thermal vehicles in 2035 has [social consequences that are not manageable.”](https://www.financedigest.com/social-and-sustainable-capital-sasc-boosts-investment-team-with-three-new-investment-managers-hermina-popa-toyin-ogundana-and-krishna-chokshi.html "Social and Sustainable Capital (SASC) boosts investment team with three new investment managers – Hermina Popa, Toyin Ogundana and Krishna Chokshi") Tavares’ comments come as the EU is currently finalising a package of climate proposals, which currently [includes an effective ban on the sale](https://www.financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unit.html "StanChart weighing options, including sale, of aircraft lessor unit") of new fossil-fuel vehicles from 2035. Under the EU’s proposals, [plug-in hybrids](https://www.financedigest.com/mg-motor-launches-plug-in-hybrid-option-in-mexico-as-ev-race-heats-up.html "MG Motor launches plug-in hybrid option in Mexico as EV race heats up") would only count as low-emission vehicles until 2030. Tavares said forcing a transition to [electric vehicles](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S") (EVs), which are more expensive than fossil-fuel or hybrid equivalents, will make car ownership unaffordable for many. “If you deny the middle classes access to freedom of movement, you are going to have serious social problems,” Tavares said. Some carmakers have embraced hybrids, especially plug-in hybrids, as a bridge technology to get to fully electric vehicles (EVs), and have argued that after [investing billions of euros](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") in the technology they should be allowed to sell them for longer. What we have to [offer our European leaders is a transitional solution,”](https://www.financedigest.com/tungsten-network-to-collaborate-with-bnp-paribas-in-offering-e-invoicing-linked-receivables-supply-chain-financing-solutions-to-large-corporates.html "Tungsten Network to collaborate with BNP Paribas in offering e-invoicing linked Receivables & Supply Chain financing solutions to large corporates") Tavares said. With a mild hybrid you can maintain “the affordable size of these vehicles and reduce [CO2 emissions](https://www.financedigest.com/global-energy-related-co2-emissions-edged-up-to-record-high-in-2022-iea.html "Global energy-related CO2 emissions edged up to record high in 2022 – IEA") by 50%,” he added. Carmakers and suppliers have also argued going electric will cost tens of [thousands of jobs](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News") among workers who make components for or assemble internal combustion engines. Separately, Tavares said Stellantis is also considering an “asset light” strategy for its Peugeot and Citroen [brands in China](https://www.financedigest.com/loreal-buys-luxury-brand-aesop-with-eye-on-china.html "L’Oreal buys luxury brand Aesop with eye on China"), where it would import mostly finished vehicles into China rather than produce them at local assembly plants. He said talks were ongoing with Chinese partner Dongfeng, which could [end up where “we do not need a factory in China.”](https://www.financedigest.com/european-shares-end-higher-on-china-recovery-optimism.html "European shares end higher on China recovery optimism") Stellantis has had problems in China, the [world’s largest car](https://www.financedigest.com/top-luxury-car-brands-in-the-world.html "Top luxury car brands in the world") market, and has been looking at options to turn around its business. That includes the idea of [importing vehicles](https://www.financedigest.com/erm-advanced-telematics-set-to-expand-its-offering-for-vehicle-manufacturers-and-importers.html "ERM Advanced Telematics set to expand its offering for vehicle manufacturers and importers") rather than running underutilised factories at a loss. (Reporting By Gilles Guillaume; writing by Nick Carey. Editing by Jane Merriman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---