17 Dec 2025

🚨 In case you missed it: Europe just hit the brakes on the EV-only future 🚨

The "End of the Combustion Engine" was supposed to be 2035. But the reality of the market just forced a massive pivot. Here is what’s happening and why it matters for the global economy: 📉 The Pivot The EU has officially backed away from its 100% emissions reduction goal for 2035. Instead of a total ban on gasoline and diesel, they are targeting a 90% reduction. 🚗 What this means for Carmakers ICE is back on the menu: New gasoline, diesel, and plug-in hybrids can still be sold past 2035. Flexibility over Ideology: Companies can use low-carbon fuels or "green steel" to offset emissions rather than being forced into an all-electric lineup. Survival Mode: With Ford recently taking a $19.5 billion charge on its EV business, the industry is screaming: “We can't make the math work yet.” 🌍 The Bigger Picture Europe is aligning more with the U.S. approach. Between trade tensions with China and the economic reality of a struggling manufacturing sector, the EU is choosing industrial stability over rigid green targets. The Lesson: You can mandate a transition, but you can’t mandate consumer demand or profitability. Economic reality eventually catches up to policy. Is this a necessary lifeline for the European auto industry, or a dangerous step backward for the planet? Source: Bloomberg, Financial Post

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