German Chancellor Calls for Flexible Approach to Combustion Engine Phase-Out

The German automotive industry is currently facing significant challenges as policymakers and industry leaders debate the timeline for phasing out vehicles powered by internal combustion engines. Recent discussions in Berlin have highlighted differing perspectives on whether a strict ban on new petrol and diesel vehicles from 2035 is feasible or appropriate for the German market.

At a high-level meeting involving government officials, industry representatives, labor unions, and state leaders, German Chancellor Friedrich Merz expressed a clear preference for a more gradual transition, rather than implementing a strict cut-off in 2035. He argued that the technical and economic conditions necessary for an abrupt shift may not be present by that date. Merz emphasized the need to avoid sudden measures that could disrupt the automotive sector, a critical pillar of the German economy.

Vice Chancellor Lars Klingbeil acknowledged the urgency of making further decisions but also recognized the necessity for increased flexibility in the transition process. Both government leaders underscored the importance of advancing the adoption of electric vehicles while also maintaining employment and industrial stability within the country.

The meeting, often described as an 'auto summit,' brought together key stakeholders to discuss strategies for supporting the automotive sector amid ongoing economic pressures. Industry advocates have repeatedly called for exceptions to the so-called combustion engine ban, citing concerns about the industry's readiness and the potential impact on jobs and competitiveness.

The current European Union regulations, established in 2022, stipulate that from 2035, new vehicles with petrol or diesel engines may no longer be registered within the EU. This policy aims to significantly reduce carbon dioxide emissions from transport and support climate protection objectives. However, the regulation is subject to review, and discussions continue about the best path forward for Germany and its automotive sector.

There have been ongoing debates within the German government regarding the country's official stance in upcoming EU-level reviews. While the Chancellor has advocated for amending the ban, the Social Democratic Party has indicated its support for maintaining the existing timeline. Any changes to the EU legislation would require a formal proposal from the European Commission, followed by approval from a majority of EU member states and the European Parliament.

Industry leaders, such as the President of the German Association of the Automotive Industry (VDA), have stressed the need for prompt and unified action from Germany in Brussels to influence the EU decision-making process. They argue that timely decisions and a coordinated national position are vital for safeguarding the competitiveness of the German automotive industry in the face of global challenges.

Parliamentary debate on this issue remains active, with significant differences in opinion among political groups. Some, including prominent members of the European People's Party, have campaigned for the abolition of the combustion engine ban, while others, including the Social Democrats and Greens, are committed to upholding stringent climate requirements. The outcome of these negotiations is expected to have far-reaching consequences for the future of mobility, industrial policy, and environmental protection in Germany and across Europe.