Hyundai warns EU rollback on 2035 ban would cost billions
- Hyundai and Kia are prepared for the EU's strict 2035 zero-emission rules, with plans for numerous electric models launching soon.
- Mercedes-Benz and other European automakers are lobbying to relax these mandates due to economic pressures and competitive disadvantages.
- The outcome of these discussions could significantly impact the automotive market and regulatory environment in Europe.
In South Korea, Hyundai Motor Group and Kia Motors have publicly expressed their support for the European Union's 2035 zero-emission legislation, despite challenges from other European automotive manufacturers. The companies assert that they are prepared to meet the upcoming emission standards, noting their strategic investments in electric vehicle production. Hyundai has a series of electric models slated for production, including the EV4, EV2, EV9 SUV, and EV3 crossover, with significant rollouts planned through 2026. Kia Europe CEO Marc Hedrich articulated that halting vehicle launches would result in significant financial losses for the company. Conversely, major European manufacturers like Mercedes-Benz and Volkswagen are pushing for a loosening of the 2035 mandates due to concerns over economic feasibility amid rising competition from Asian firms. The ACEA, led by Mercedes-Benz CEO Ola Kallenius, has initiated moves to convince the European Commission to reconsider the strict emission targets by highlighting existing challenges such as dependency on foreign battery producers and uneven EV infrastructure. Hyundai, taking an opposing stance, is committed to meeting the rigid emissions targets as it rolls out its ambitious plans for electric vehicle production. Kallenius has faced criticism for his past assurances regarding the transition to electric vehicles, and the recent shift in the industry underscores the varying strategies among automakers in adapting to both market demands and regulatory expectations. The conflicting positions of Hyundai and traditional automakers will come to a head in discussions led by European Commission President Ursula von der Leyen, as these manufacturers navigate the future landscape of their industry amid rapid changes and increased competition, particularly from Asian manufacturers offering competitive pricing and quality. With the collapse of Northvolt further complicating Europe's battery production capacity, the stakes remain high as the automotive sector grapples with the path forward.