Volvo Cars CEO Torches EU Plan To Delay Automaker CO2 Emissions Requirements — And He Should

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Last Updated on: 6th March 2025, 08:11 pm

We’ve published a few articles about the European Union’s move to delay CO2 emissions requirements. Overall, we see it as a weak, harmful move that is not required. Now the CEO of Volvo Cars, Jim Rowan, has come out and torched the EU over this as well.

Rowan says that he’s “extremely disappointed” in the EU’s plan, which is to give automakers three years to meet fleet CO2 emissions requirements that were supposed to apply to this year.

The 2025 requirements have been in place for several years. This is not something that was just suddenly sprung on automakers. They had the opportunity to develop EVs and plan their transitions in such a way that they met the requirements. Some automakers have (like Volvo Cars), while others have dragged their feet and assumed they’d get the requirements watered down or buy CO2 emissions credits if needed — or even pay fines in worst-case scenarios.

Volvo Cars is leading the way among legacy European automakers when it comes to vehicle electrification. It’s got the most ambitious timeline for full electrification of its fleet. So, it’s logical that the company would be upset about a sudden change of plans that make its leadership look foolish. That said, the company’s electrification leadership could be appreciated more, if its example and level of electrification are far above its competitors’.

Overall, though, Rowan made a very important point — that suddenly changing plans like this erodes businesses’ trust in government, erodes the relationship of trust between the two. It’s a fundamental point. Corporations hate risk, and even if it means being regulated more, they want to know the plan ahead of time and have a steady plan that they can rely on as they grow and evolve. The EU looks set to tear that up, which clearly angers Rowan. (Never mind that this also means we’re less likely to adequately deal with the climate change crisis we’re facing.)

Of course, at the same time, this is other automakers’ playbook. They constantly try to delay and weaken regulations that make cars and SUVs safer, cleaner, and better for the public. They’ve been doing this for decades. And, apparently, many of them count on getting last-minute “wins” like this. If they constantly lobby on these matters, they can work into their plans and forecasts some degree of success neutering such regulations.

One ironic thing here is that China is far above Europe’s targets or requirements, selling far more electric vehicles (in volume and as a percentage of all new auto sales) than Europe. Also, some countries in Europe are well above the requirements. That seems to clearly indicate that the requirements are not too difficult to achieve. If they can be achieved and far surpassed in some places, why can’t they be achieved in the EU? If Volvo can rapidly electrify its fleet, why can’t others?

It is extremely disappointing that just at a time when the world needs more strong leaders, the EU is looking to weaken itself and its demands on such an important matter.

It’s also a push to consider Volvo Cars the next time you go shopping for a new car.

Featured photo of Volvo Cars CEO Jim Rowan courtesy of Volvo Cars.