Porsche CFO Hints That EU Fossil Fuel Ban Could Be Pushed Back

A slowdown in recent EV orders has the European Union rethinking the fossil fuel ban.

As evidenced by the recent release of the all-electric Macan, Porsche is still moving ahead with developing EVs. And they are not alone, as most automakers shift their focus away from internal combustion engines. A lot of momentum towards EVs comes from various world governments pushing mandates that would eliminate the traditional internal combustion engine (ICE) vehicle. Last year the European Union countries approved a landmark law that that would eliminate the sale of ICE vehicles by 2035. It may have seemed like a good idea at the time, but it now seems possible that the fossil fuel ban may be delayed.

According to a report from Automotive News Europe Porsche Chief Financial Officer Lutz Meschke feels that the fossil fuel ban may not happen in 2035 as originally planned. Meschke was in Singapore last week when he let his thoughts be known. “There’s a lot of discussions right now around the end of the combustion engine,” Meschke said. “I think it could be delayed.” The main reason for his trepidation around the 2035 ban is due to the slowdown in EV orders. The demand for EVs is just not strong enough to support a total ban on ICE vehicles in just over ten years from now.

EV Demand

The early adopters who wanted EVs have already rushed out and bought them. And rather quickly another group of buyers were convinced of the benefits of driving an EV. So, they went out and bought theirs. But now it is getting harder and harder to convince the remaining car buying public that an EV is the way to go.

Many cite the lack of reliable charging networks and overall high prices of EV as top concerns. Also, many EV buying incentives have been rolled back. “We have to see how steep the ramp-up curve is in coming years,” Meschke said. “If we have a situation like now, with certain reluctance to buy electric cars in Europe, then maybe the subsidies will come back.”

eFuels

Last year, shortly before the EU fossil fuel ban was passed, Germany withdrew their support of the plan. Eventually the EU and Germany reached a deal with a provision that some combustion engines be allowed beyond 2035. These engines would run on eFuels. As many Rennlist readers are probably already aware, Porsche is also a significant backer of eFuel technology.

Porsche has been working on a synthetic carbon-neutral eFuel for years. They even have an eFuel plant in Punta Arenas, Chile. By 2026 Porsche is expecting 55 million liters of eFuel to be produced at that plant. And by 2028 up to ten times that amount. Will it be the savior for those that are not looking forward to an all-EV world? It is too early to tell, but there are signs that a complete EV takeover may at least be delayed.

Photos: Porsche

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Joe Kucinski

Joe has been obsessed with cars since he got his very first Matchbox toy in the ‘70s. In 2003, he found a new obsession in track days that led to obtaining his SCCA competition license in 2015. In 2019, he became a certified driving instructor for the National Auto Sport Association. His love for all things four wheels has never wavered, whether it's driving some of the best cars in the world on the racetrack, tackling 2,000-mile road trips in 2-seat sports cars or being winched off the side of a mountaintop in a Jeep. Writing for the suite of Internet Brands Auto Communities sites, including Rennlist.com, Ford Truck Enthusiasts, 6 Speed and more allows him to share that knowledge and passion with others.