Europe’s automotive leadership has shifted away from developing new internal combustion engines toward environmentally friendly powertrains. This shift, articulated by Luca de Meo, the CEO of Renault and president of the European Automobile Manufacturers Association ACEA, was reported by Policy Pressure. De Meo stated clearly that no company in Europe is actively creating a fresh internal combustion engine from the ground up. The industry is directing its substantial investments toward electric and hydrogen technologies.
According to the Renault executive, European carmakers now find themselves in a race to close the gap with Chinese competitors, who are currently ahead by a decade in battery technology for electric vehicles. He emphasized that European policy makers advocate technological neutrality and should not compel automakers to pursue a single path to zero emissions by 2035. The European Union’s framework suggests that batteries and hydrogen present viable alternatives to gasoline, yet the broader implication is to let manufacturers decide the most effective mix of solutions. De Meo also acknowledged that electric cars will likely dominate the transportation landscape in the coming years, underscoring a long term trend that industry players must navigate.
A point of contention remains within EU deliberations because the decision to ban the sale of cars powered by conventional engines from 2035 has not yet reached a consensus. Several countries, including Germany and Italy, have voiced opposition to a complete rejection of internal combustion engines. Those in opposition argue for the exclusion of engines that would run on synthetic fuels from any ban, arguing that synthetic propulsion could be a transitional option that preserves jobs and investment in European manufacturing while reducing tailpipe emissions.
Reports in German media have indicated that BMW intends to maintain internal combustion engine production for at least another decade. The company is reportedly developing new gasoline engines designed for future crossovers, signaling a continued but evolving role for ICE technology alongside electrification. This stance reflects a broader tension within the European industry as manufacturers balance the push toward zero emissions with the practical realities of supply chains, consumer acceptance, and regional economic considerations. Policy pressures suggest that the path to a carbon-neutral transportation system will likely feature a diversified portfolio of technologies rather than a single switch to one solution.
In summary, European automakers are recalibrating their research and development priorities in response to both regional policy guidance and global competitive dynamics. The industry is elevating investments in battery chemistry, energy density improvements, charging infrastructure, and powertrain efficiency for electric and hydrogen systems. At the same time, some manufacturers remain committed to preserving a transitional role for internal combustion engines, especially where synthetic fuels could offer a bridge toward lower emissions without sacrificing performance or reliability. The ultimate direction will depend on policy decisions, technological breakthroughs, and market receptivity, but the predominant expectation remains that electric propulsion will ultimately become the dominant mode of personal mobility while a pragmatic, staged approach to ICE optimization and synthetic fuels can coexist for some time.