Pole Position "UBS European & US Autos Daily" Hummel

Research evidence excerpt

Pole Position "UBS European & US Autos Daily" Hummel

Global Research

14 May 2026ab

Pole Position Equities

Europe including UKUBS European & US Autos Daily

Automobiles

Patrick Hummel, CFA

Auto industry lobbies for further relaxation of EU CO2 rules Analyst

Auto OEM executives met EU lawmakers in Brussels yesterday to lobby for further patrick.hummel@ubs.com

relaxation of the CO2 rules, according to Bloomberg. The EU Commission had proposed +41-44-239 52 54

a minor relaxation back in December, requiring emissions to be cut by 90% (instead of David Lesne

100%) in 2035. Reportedly, there is also some pushback by the industry on the EU’s Analyst

Industrial Accelerator Plan which introduces some local content requirements. The day david.lesne@ubs.com

before the meeting, the EU Parliament’s rapporteur’s report also called for more +33-14-888 3034

flexibility and technology neutrality, whilst specifically addressing the very ambitious Joseph Spak, CFA

goals for the Vans segment that lags passenger cars in electrification. Analyst

joseph.spak@ubs.com

Our view: +1-212-713 3089

As the legislation process goes into the “hot” phase, we expect more noise and lobbying Juan Perez-Carrascosa

efforts in the coming weeks and months. We see a good chance of a further (slight) Analyst

modification of the proposed CO2 rules, especially for the 2035 framework. Also, on the juan-perez.carrascosa@ubs.com

+34-91-436 9025

Industrial Accelerator Act we think the industry’s demands to protect existing supply

chains will find some recognition. However, a u-turn in CO2 policy seems unlikely to us Paul Gong

as there are diverging interests between the EU member states. On the positive side, Analyst

there is a growing sense of urgency for relaxing CO2 rules in the Vans segment, which paul.gong@ubs.com