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Adrian Padeanu

Regulations Have Killed Fun Cars In Europe

Over the last few years, we’ve witnessed the gradual demise of performance vehicles in Europe. Honda’s decision to retire the Civic Type R this week follows a long string of similar announcements by other brands. Not because they wanted to, but because they had to. Honda diplomatically says the CTR is being discontinued “in accordance with European legislation.” Reading between the lines, the hot hatch is disappearing because it can’t meet increasingly strict emissions standards.

For the same reason, Mazda was forced to axe the Miata’s 2.0-liter engine last year, leaving the smaller 1.5-liter version as the only option for MX-5 buyers in Europe. Similarly, Volkswagen discontinued the six-speed manual gearbox in the Golf GTI, a move with global implications. While the Golf R was already automatic-only in Europe, Americans still had the option of a manual. With the facelifted model, even that’s gone as the flagship Golf has lost the clutch pedal.

Stringent EU legislation targeting emissions has also claimed two casualties among Hyundai's models: the i20 N and i30 N. Making matters worse, even if not directly emissions-related, Ford has ended production of the Fiesta ST in 2023 and plans to discontinue the Focus ST in the coming months.

However, it’s not just emissions rules that are killing off sports cars. About a year ago, the 718 Boxster and Cayman were withdrawn from the European market. New EU cybersecurity regulations forced Porsche to retire the mid-engine duo earlier than planned. However, the Cayman GT4 RS and Boxster RS Spyder were granted exemptions due to their limited production.

The ICE-powered 718s are still available in markets outside the EU, but this will not be the case for long. Production ends in October, and their EV successors won’t be ready in time for a seamless transition. Though not a sports car, the first-generation Macan also bowed out of Europe in 2024 for the same reason. The crossover dies altogether in 2026, with a replacement coming near the end of the decade.

Similarly, Toyota was forced to discontinue the GR86 last year due to General Safety Regulations 2 (GSR2), and its counterpart, the Subaru BRZ, followed suit. Alpine received a two-year exemption for the A110, since Renault’s performance division qualifies as a low-volume brand. However, the French sports coupe will be retired after July 2026 to make way for an electric successor.

As if that weren’t enough, even the models that survive face extreme headwinds in Europe. Several countries impose gigantic taxes on high-emission vehicles. Take the Netherlands, where a Toyota GR Yaris starts at €89,295 ($102,000). In France, the mandatory CO₂ tax pushes the price of the three-cylinder hot hatch into six-figure territory. Speaking of Toyota, the Supra is on its way out too, another performance car disappearing from Europe.

I understand the need for tighter emissions regulations; I really do. The harsh reality is that all cars harm the environment. But you can’t convince me that a 1.6-liter supermini like the GR Yaris is more environmentally damaging than a 6,801-pound (3,085-kg) electric Mercedes G-Class. Yes, it has zero tailpipe emissions, but it weighs more than double that of a GR Yaris.

To be clear, the EU isn’t banning high-emission vehicles outright. Mercedes can still sell an S-Class with a V-12 engine, provided its EVs and plug-in hybrids offset the emissions. In fact, the EU has extended the fleet-wide CO₂ emissions target from 2025 to 2027, giving automakers two more years to hit the 93.6 g/km average or 15% below the 2020–2024 target.

But things will get even tougher in 2030, when automakers must stay below 49.5 g/km. What is the penalty for failing to meet this target? Massive fines. According to the European Commission:

“If the average CO2 emissions of a manufacturer's fleet exceed its specific emission target in a given year, the manufacturer must pay – for each of its new vehicles registered in that year – an excess emissions premium of €95 per g/km of target exceedance.”

€95 ($109) may not sound like much, but it applies to every single car registered. For giants like Volkswagen Group or Stellantis, the costs are staggering. Earlier this year, Rolf Woller, Volkswagen's Head of Group Treasury and Investor Relations, said the company risked a €1.5 billion ($1.7 billion) fine just for 2025.

In 2024, Renault’s CEO estimated that automakers active in Europe could collectively pay up to €15 billion ($17.1 billion) in emissions penalties, although both figures were quoted before the target was extended to 2027. Automakers now have a bit more breathing room to push plug-in hybrids and EVs, offsetting their remaining ICE models. A more extreme measure would be to limit ICE production, something Stellantis hasn’t ruled out if EV sales fall short.

In the first four months of this year, fully electric vehicles reached a 15.3% market share in the EU, a solid 3.3% increase from the same period last year. Hybrids climbed from 28.9% to 35.3%, and plug-in hybrids nudged up from 7.2% to 7.9%. These figures, published by the European Automobile Manufacturers' Association (ACEA), are promising for carmakers trying to avoid heavy fines.

Still, combustion-powered fun cars are fighting a losing battle, not just because of their high emissions, but because they occupy a niche market. Understandably, manufacturers don’t want to invest in cleaner engines for vehicles they’ll only sell in small numbers. The math doesn’t add up.

The compromise? Electrify performance cars. Some, like the highly controversial Mercedes-AMG C63, have opted for the plug-in hybrid route. Others, like the upcoming Boxster and Cayman, are going fully electric. The era of gas-only performance vehicles in Europe is coming to an end, and this shift will have global consequences, especially since many of the industry’s most prominent players are based in Europe.

Let’s not forget the EU’s goal: zero grams of CO₂ per kilometer from all new cars by 2035. That effectively bans gas engines in under a decade. There is a small loophole, as ICE vehicles running on synthetic fuel or hydrogen could be allowed. But realistically, widespread adoption of those alternatives in time seems highly unlikely.

It’s truly the end of an era for car enthusiasts.

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