Image: BMWAfter reports in April suggested that an agreement on the EU’s auto package would likely not be reached until September, the process now appears to be dragging on even longer. According to the current timeline, the European Parliament is not expected to vote on the new regulations for the automotive sector and vehicle fleets until November. However, positions among the various political groups remain far apart, while lobbyists from affected companies and associations continue to push for their interests.This information comes from a report by Automobilwoche. “Everything must be finalised by the end of the first quarter of 2027,” EVP MEP Jens Gieseke (CDU) is quoted as saying in the article. The deadline is likely driven by the upcoming French presidential elections in May 2027, as well as parliamentary elections in Poland and Spain.One of the most contentious aspects of the debate is company cars. As is well known, the EU plans to introduce separate rules for the electric vehicle (EV) share of fleets operated by larger companies (with 250 or more employees or €50 million in turnover) as part of its auto package, tailored to each member state. The required EV share could now be significantly higher than initially proposed by the European Commission.While the Commission’s draft proposed a minimum target of 54% zero-emission vehicles for Germany from 2030, a new draft from the European Parliament envisages an electric quota of 65% by 2030. Furthermore, the target for 2035 is set to rise from 95% to 99%.The draft by Tiemo Wölken and François Kalfon, both members of the Social Democratic Group, also calls for stricter electric quotas in other EU countries. For example, in Austria, the Social Democrats propose a 70% EV share for company fleets by 2030, instead of the 58% outlined by the European Commission. Overall, the measures aim to achieve an EU-wide share of 54% electric cars among company vehicles, up from the 45% target proposed in the Commission’s December draft.The ‘proposal for a regulation on clean corporate vehicles’ by the Social Democrats also includes a demand that EU member states ‘must no longer grant tax or financial advantages for fossil-fuel-powered company cars from 2028 onwards’. Instead, only electric vehicles “made in Europe” should receive tax privileges. We have reported on this previously.However, it remains uncertain whether the draft will secure a majority. The EPP Group is already vehemently opposing it, while the German Association of the Automotive Industry (VDA) rejects any additional regulatory framework for corporate fleets, calling instead for a reduction in bureaucracy. The VDA argues that conditions for e-mobility must be further improved, particularly through the expansion of power grids and charging infrastructure.EPP strongly opposes credit systemIn parallel, discussions in the European Parliament continue regarding new CO₂ targets for car manufacturers. The focus is on the so-called “end of the internal combustion engine ban”, as the European Commission’s draft for 2035 proposes a CO₂ reduction target of only 90% compared to 2021 levels, rather than 100%. This would correspond to a fleet CO₂ emissions average of eleven grams per kilometre per manufacturer, instead of zero grams, which would effectively ban new internal combustion engine vehicles.However, the remaining CO₂ emissions under this proposal would be offset through a credit system using green steel and e-fuels, as outlined in the Commission’s draft. The EPP Group rejects this approach, demanding a ‘real 90%’ reduction without a credit system, thereby effectively securing a future for petrol and diesel cars.According to Automobilwoche, the EPP could potentially secure a majority for its positions by collaborating with far-right parties. However, German Chancellor Friedrich Merz (CDU) is reportedly insisting on reaching an agreement with the centrist groups, namely the Social Democrats and the liberal “Renew” group.automobilwoche.de, vda.de, europa.eu (all sources in German)