EU Climate Targets Threaten Subcontractor ZF's Workforce
The European Union (EU) Commission has announced plans to tighten CO2 regulations for the automotive industry, aiming for a significant reduction of the CO2 limit value by 2030. This move, which also applies to the automotive industry as a whole in 2030, has sparked a mix of engagement and caution within the industry.
Wolf-Henning Scheider, CEO of automotive supplier ZF Friedrichshafen, has expressed strong resistance to the proposed regulations. According to Scheider, the further reduction of the CO2 limit value will bring more stress to the system in terms of development resources and investments. He believes that the industry may struggle to meet the EU Commission's CO2 regulations due to resource and investment constraints.
Scheider also expresses concern that the industry cannot implement its desire to take the people along in the transformation and give them a perspective. He believes that the disruption caused by these regulations could lead to economic dislocation and potentially harm European competitiveness.
The industry, however, has been actively participating in the Strategic Dialogue initiated by the EU. This dialogue resulted in the extension of the compliance period for emissions targets via a three-year averaging period (2025–2027), allowing companies to balance performance across years rather than meeting strict annual targets. This approach, which was formally adopted and entered into force in July 2025, reflects industry input to ease immediate compliance pressures.
Regarding the stricter medium- and long-term targets—specifically a 55% reduction in CO2 emissions for new cars by 2030 and 100% reduction (effectively a ban on internal combustion engine vehicles) by 2035—the industry seems to acknowledge the direction but seeks supportive policies and incentives to maintain competitiveness and economic viability.
The EU and supporting organizations argue that these targets could protect and create up to one million jobs by driving growth in electric vehicle production and battery manufacturing. However, industry voices stress the importance of measured implementation to safeguard investments and adapt to global competition, especially from markets like China and the U.S.
Concurrent with these regulatory pressures, the EU Commission is advancing measures to bolster demand for zero-emission vehicles through incentives, such as tax breaks for zero-emission vehicles, and initiatives to improve battery health and repairability. The Commission also plans tougher regulations for fleets, like a 100% electric vehicle quota for rental and company fleets by 2030, which has already encountered resistance from some industry stakeholders.
In summary, the automotive industry supports the EU’s zero-emission goals but advocates for pragmatic timelines, regulatory flexibility, and targeted incentives to facilitate a viable transition without causing economic dislocation or loss of European competitiveness. The industry's stance underscores the need for a balanced approach that considers both environmental concerns and the economic realities of the automotive sector.
[1] EU Commission Press Release [2] Automotive News Europe [3] Reuters [4] EU Observer
- Environmental-science experts are actively discussing the challenges posed by the EU Commission's stricter climate-change regulations for the automotive industry, particularly the 55% reduction in CO2 emissions for new cars by 2030 and the 100% reduction by 2035.
- The financial implications of these regulations on the automotive industry are a hot topic in discussions, with industry leaders emphasizing the importance of supportive policies and incentives to maintain economic viability.
- Industry leaders in the environmental-science sector, such as Wolf-Henning Scheider, CEO of ZF Friedrichshafen, are advocating for a balanced approach that considers both the environmental concerns and the economic realities of the industry, to avoid economic dislocation and maintain European competitiveness.
