German Chancellor Merz questions EU’s 2035 ban amid auto industry slump

German Chancellor Friedrich Merz has urged the European Union to revisit its 2035 deadline for ending the sale of new combustion-engine cars, a move he says could offer much-needed breathing space to Germany’s struggling auto industry. In an interview with ntv, Merz described the EU’s combustion ban as “wrong", signalling his intent to push back against one of Europe’s most ambitious climate policies.

His comments come ahead of a crucial meeting with automotive leaders scheduled for Thursday, where the country’s future industrial strategy will likely dominate discussions. “I don’t want Germany to be one of the countries supporting this wrong ban," Merz said, underscoring the mounting pressure within Berlin’s governing coalition to take a more pragmatic stance on the transition to electric mobility.

A sector in slow gear

Once the pride of Europe’s industrial might, Germany’s auto industry now faces a period of deep uncertainty. Giants like Volkswagen, BMW and Mercedes-Benz are caught between two difficult realities, a slowing EV demand at home and brutal competition from fast-moving Chinese players such as BYD.

Earlier this month, Porsche announced delays in its electric vehicle rollout, citing weak demand. The ripple effect is obvious: production lines are being reconsidered, investments reconsidered, and long-term strategies rewritten. The EU, sensing the turbulence, has already promised to fast-track a review of its 2035 combustion ban. But for many within the German establishment, that may not be enough.

Technology, not prohibition

Merz believes that innovation, not prohibition, must be the policy driver. He says that diesel engines still have an essential role to play in industries such as trucking, and that closing the door on combustion technology would be a "serious mistake."

He also sounded hopeful regarding synthetic fuel, dubbing it as a possible bridge between environmental accountability and industrial continuity. “We should not ban; we should enable technologies," he said, stressing that Germany must remain a hub for research and development rather than policy-imposed limitations.

The balancing act ahead

The Chancellor’s stance has not yet convinced his coalition partners, particularly the Social Democrats (SPD). Environment Minister Carsten Schneider remains cautious, though Merz hopes for consensus before Thursday’s auto summit.

As Germany tries to chart its course through economic headwinds, political divides, and the accelerating EV race, one thing is clear, the road to 2035 will be anything but smooth. Whether Berlin stands firm with Brussels or carves its own path may ultimately shape the future of European mobility itself.

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