Germany Pushes to Soften EU 2035 Combustion Car Ban Amid Industry Struggles

CSR/ECO/ESG

Merz Seeks Flexibility for Automakers

German Chancellor Friedrich Merz has called on the European Union to ease its landmark 2035 ban on new combustion-engine car sales, arguing that “highly efficient” conventional vehicles should remain permitted beyond the deadline. Merz said he would formally urge the European Commission to allow hybrids and advanced combustion models alongside electric vehicles, framing the move as vital to protecting Europe’s embattled auto industry The Local – Germany ET Auto.


Industry Concerns and Political Context

The EU’s current legislation requires all new cars registered from 2035 to be zero-emission, effectively ending the sale of petrol and diesel models. Automakers including BMW, Mercedes-Benz, and Volkswagen have warned that the transition is moving slower than expected, citing high costs, weak consumer uptake of EVs, and fierce competition from Chinese manufacturers Daily Sabah POLITICO.

Merz’s stance reflects growing pressure in Berlin to safeguard jobs and competitiveness in a sector that remains central to Germany’s economy. Finance Minister Lars Klingbeil has also signaled support for revisiting the ban, suggesting a rare consensus across party lines ET Auto.

This is in line with wider industry opinions which stipulates that while the move to zero emission is justified, feasible and overdue, any hasty adoption and implementation will only result in a loss not only to several economies that relies on this sector but also to the workers and their families who are dependence on the automobile sector; these misgivings is more pronounced given the shake up in the industry due to artificial intelligence and robotics.


EU Signals Possible Flexibility

European industry officials have acknowledged the strain on automakers, with the Commission pledging to review the policy and consider greater flexibility. Relief measures are expected to be announced, potentially opening the door to a compromise that balances climate goals with industrial realities Daily Sabah.


Strategic Outlook

Merz’s intervention underscores the tension between Europe’s climate ambitions and the economic survival of its auto industry. While environmental advocates warn against diluting emissions targets, policymakers face mounting pressure to ensure the transition to electric mobility does not destabilize one of the continent’s most critical sectors.



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