Germany's Chancellor Calls For European Union (EU) To Lift Ban On Internal Combustion Engine Cars

According to foreign media reports, recently, German Chancellor Friedrich Merz called on the EU to abandon the 2035 deadline for a complete ban on the sale of internal combustion engine vehicles, allowing the struggling automotive industry to take a more gradual path toward achieving carbon neutrality goals.

Merz's statement is the clearest position expressed so far—EU leaders are currently preparing to discuss stricter climate targets for 2040. As the EU faces multiple challenges, including sluggish economic growth, increased defense spending, and risks of trade conflicts, the pace of the green transition and its impact on the automotive industry have risen to the forefront of the EU's political agenda.

Image source: Mercedes-Benz

Merz stated that he will promote his proposal at the informal EU leaders' meeting in Copenhagen on October 1, and will continue to push for his proposal at the EU's quarterly routine summit in Brussels in late October.

He stated: "I am promoting this proposal to the heads of state and government of EU countries and the European Commission - to lift the ban on internal combustion engines and allow the use of technologies such as range extenders, which German automakers and suppliers are developing. At the same time, I am also advocating for allowing car companies to continue selling hybrid models."

Merz stated: "My position is to let the automotive industry and the supply chain decide the technological path to achieve carbon neutrality—let them show us the technological path to carbon neutrality by 2035, 2040, and 2045."

As the Chancellor of Germany, Merz finds himself in a dilemma: on one hand, some members of the Christian Democratic Union, which he leads, want to further relax or even abolish the EU ban on internal combustion engine vehicles; on the other hand, the Social Democratic Party in the German coalition government generally supports this ban. Merz admitted, "I have not yet convinced everyone in the coalition government. We are still discussing this and believe that we will ultimately achieve a positive outcome."

The European Union introduced relevant regulations at the beginning of 2023, stipulating that from 2035 onwards, the sale of new gasoline and diesel vehicles will be prohibited. This means that automotive manufacturers must reduce vehicle carbon emissions to zero within the next decade. For the large German automotive industry, this is undoubtedly a huge challenge.

Previously, during Olaf Scholz's tenure as Germany's Chancellor, various parties in Germany reached an agreement on "exempting cars using e-fuels from the ban" (a concession benefiting high-end sports car brands like Porsche). Subsequently, the German government no longer opposed the aforementioned ban on internal combustion engines.

However, for a long time, automobile manufacturers in EU countries have been dissatisfied with the EU's timeline for banning internal combustion engine vehicles. Ola Källenius, the CEO of Mercedes-Benz Group, also serves as the president of the European Automobile Manufacturers Association (ACEA) and is one of the representatives advocating for a relaxation of car carbon dioxide emission regulations.

Kang Linsong has repeatedly called on the EU to adopt more flexible policies that allow hybrid vehicles and efficient gasoline engines to continue being part of the industry's product offerings. He warned that if the EU implements the planned ban on internal combustion engine vehicles, it will lose consumer support and severely impact the job market.

As a pillar industry of Germany, the automotive industry, led by Volkswagen, Mercedes-Benz, and BMW, is facing a double blow: on one hand, it is impacted by the tariff policies of U.S. President Trump, and on the other hand, it has to deal with increasingly fierce market competition from Chinese rivals.