UPDATE 1-Car industry bets that EU will delay announcement on combustion engine cut-off, sources say

The European Commission may delay the announcement of its support package for the EU car industry, which carmakers are hoping could include a revision of a 2035 ban on the sale of combustion engines, industry sources said on Wednesday. The Commission, the EU's executive arm, is scheduled to announce the package on December 10, but a German car industry source said that date would probably be delayed.

The European Commission may delay the announcement of its support package for the EU car industry, which carmakers are hoping could include a revision of a 2035 ban on the sale of combustion engines, industry sources said on Wednesday.

The Commission, the EU's executive arm, is scheduled to announce the package on December 10, but a German car industry source said that date would probably be delayed. Another industry source said there was a sense shared by all automakers that the EU Commission could delay the publication of its proposals beyond December 10.

This source also said there was not any official confirmation of any delay. Earlier this week, EU Transport Commissioner Apostolos Tzitzikostas told Handelsblatt the announcement of the package could be delayed until early January.

European carmakers are lobbying Brussels for greater flexibility on the combustion engine ban, such as acceptance of CO2-neutral fuels and plug-in hybrids. The industry is trying to navigate the costly shift to electric while facing competition from China and margin-squeezing tariffs.

A letter to Brussels from German Chancellor Friedrich Merz appealing for plug-in hybrids and "highly efficient" combustion engines to be exempt from the cut-off was well received, Tzitzikostas told the German business daily. The European Commission said on Tuesday all of its timings are indicative.

"We are still receiving some input. We received the German contribution on Friday. We're still waiting for some others. It is an ongoing process and, in view of all input, a decision on the next steps will be made," a Commission spokesperson said.

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