Finance

Volkswagen welcomes EU move to drop combustion engine ban

Published by Global Banking & Finance Review

Posted on December 16, 2025

1 min read

· Last updated: January 20, 2026

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Volkswagen welcomes EU move to drop combustion engine ban
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FRANKFURT, Dec 16 (Reuters) - Volkswagen, Europe's largest automaker, on Tuesday said an EU proposal to drop an effective ban on new combustion-engine cars from 2035 was "economically sound". "Opening

Volkswagen Backs EU's Combustion Engine Ban Reversal

FRANKFURT, ‌Dec 16 (Reuters) - ‍Volkswagen, ‌Europe's largest automaker, ⁠on ‌Tuesday said an EU proposal ⁠to drop an effective ​ban on new ‌combustion-engine ⁠cars from 2035 was "economically sound".

"Opening ​up the market to vehicles with combustion ​engines ‍while compensating ​for emissions is pragmatic and in line with market ⁠conditions," the company said ​in e-mailed comments.

(Reporting by Christina Amann ‌and Christoph SteitzEditing by David Goodman)

Key Takeaways

  • Volkswagen supports EU's proposal to drop the 2035 ban.
  • The automaker views the proposal as economically sound.
  • Volkswagen emphasizes market conditions and emissions compensation.
  • The decision impacts Europe's largest automaker's strategy.
  • EU's proposal aligns with current market dynamics.

Frequently Asked Questions

What is a combustion engine?
A combustion engine is an engine that generates power by burning fuel, typically gasoline or diesel, to create a force that moves the vehicle. It is a common technology used in automobiles.
What is sustainability?
Sustainability refers to the practice of using resources in a way that meets current needs without compromising the ability of future generations to meet their own needs. It often involves environmental conservation and responsible resource management.
What is market compensation?
Market compensation refers to the practice of adjusting prices or wages based on market conditions to ensure competitiveness and fairness. It can involve compensating for emissions or other factors in various industries.
What is economic soundness?
Economic soundness refers to the stability and reliability of an economic policy or practice, indicating that it is based on solid principles and is likely to produce positive outcomes without leading to financial instability.

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