Europe's car industry awaits a key EU decision initially due December 10, which could delay the 2035 ban on combustion engine cars. The European Commission may push the announcement to January to finalize plans covering all impacts. Reports say the EU plans to demand up to 90% electric vehicle quotas by 2030 for rental, leasing, and company car fleets. This move would push electrification faster for fleets, while relaxing the overall 2035 combustion engine ban to allow alternatives like hybrids. EU Commissioner Apostolos Tzitzikostas said, "We want to present an automotive package that is truly comprehensive and covers all the necessary aspects." However, a car rental industry executive said, "The Commission is not looking for dialogue or discussion, that's our impression." Since 2022, EU countries agreed to ban new combustion engine cars by 2035 to cut emissions and reach climate neutrality by 2050. But Germany, led by Chancellor Friedrich Merz, is pushing the EU to ease the 2035 ban. Merz supports hybrid technologies, saying it's "much more opportune and pragmatic" to develop efficient hybrid engines combining combustion and electric power. Major German carmakers like BMW back this view. BMW told DW, "The EU Commission is ignoring market realities and risking employment and competitiveness in one of its key industries." They hope the EU will adopt a balanced approach allowing all drive systems. Car rental companies, representing about 60% of new car registrations in Europe, are concerned about sudden EV quotas. Sixt criticized the plan, warning that "premature quotas would deepen Europe's dependency on China for batteries and minerals." Sixt also cited poor EV charging infrastructure as a major obstacle to faster electrification. Andrew Mountstephens of Sixt said, "Customer preference still tended strongly towards diesel and petrol cars," pointing to infrastructure gaps as the main hurdle. Several rental firms like Hertz have lost billions investing in electric vehicles that customers shun. Hertz reported a $2.9 billion loss in 2024 due to costly Tesla fleets with low demand. Patrick Schaufuss from McKinsey noted the EV transition is "not as fast as we have wished," and said EU policies must balance decarbonization with economic reality. He stressed, "Maintaining economic success throughout this period is absolutely crucial," while confirming electrification is the long-term future. The EU Commission declined further comment but confirmed work on the automotive package is ongoing. The industry now watches closely whether the EU will freeze or soften its tough 2035 ban or accelerate fleet electrification under new quotas.