The Transport & Environment (T&E) Federation has recently published a report titled "European Automobiles at a Crossroads," highlighting a pivotal moment for the European automotive sector. The report underscores that the timing of the "ban on internal combustion engines" proposal will profoundly shape the industry's future. On one hand, the decline in electric vehicle sales and the looming threat of additional tariffs from the Trump administration cloud the ambition to "phase out the sale of internal combustion engine vehicles across the 27 EU member states by 2035." On the other hand, abandoning this goal could lead to the loss of 1 million jobs in the European automotive industry and a significant reduction in investments in the new energy sector. Thus, the European automotive industry finds itself in a precarious position, balancing sunk costs with the necessity for strategic transformation.