The company is considering closing a plant in Germany due to overcapacity and reduced vehicle demand, while also facing competition from domestic EV makers like BYD in China.

Norway has achieved remarkable success in electric vehicle (EV) adoption, with nearly all newly registered cars being electric, contrasting sharply with the rest of Europe, where EVs accounted for only 12.5 percent of new car sales by the end of 2023.

This surge in EV numbers is partly due to the deregistration of many classic cars as summer ends, highlighting the growing trend towards electrification.

ACEA has highlighted the need for competitive manufacturing conditions and incentives to enhance the production and adoption of zero-emission vehicles.

Director Øyvind Solberg Thorsen of Norway’s Road Traffic Information Council described this shift as a historic milestone in the electrification of the passenger car fleet.

In contrast, Volkswagen AG is facing significant challenges, including declining sales and the need for drastic cost-cutting measures, which may lead to potential factory closures in both Europe and China.

The automotive industry is grappling with a lack of essential conditions for boosting the production and adoption of zero-emission vehicles, including inadequate charging infrastructure and affordable green energy.

Concerns have been raised about the EU's inconsistent measurement of CO2 emissions across production and supply chains, which may disadvantage manufacturers in countries like Germany.

Industry representatives warn that the CO2 reduction targets may be set too high, despite indications that they are achievable with increased EV sales.

Critics, including Greenpeace's transport expert Marion Tiemann, argue that automakers are focusing on expensive electric SUVs instead of affordable options for the general population.

Major car manufacturers, including Volkswagen and Renault, are advocating for a delay in the new carbon emissions targets set for 2025 to avoid potential fines.

The rapid enforcement of pro-EV policies in Europe and China has disrupted market conditions, creating additional challenges for traditional automakers.