November 29, 2025 – German Chancellor Merz announced today that he would send a letter to the European Commission, urging the EU to maintain technological options for the automotive industry beyond its 2035 ban on new internal combustion engine (ICE) vehicle sales.
Speaking at a press conference summarizing outcomes from this week’s coalition government leaders’ meeting, Merz emphasized the need to balance “competitiveness with climate protection goals.” He stated, “I will ask the European Commission to permit hybrid vehicles with internal combustion engines post-2035,” while also advocating for continued use of high-efficiency combustion engines.
The pushback aligns with longstanding opposition from German policymakers. In 2022, Germany’s finance minister criticized the EU’s proposed 2035 phaseout, citing economic risks. The EU’s Green Deal, approved in March 2023, had mandated a complete halt to sales of new gasoline, diesel, and hybrid cars across the bloc starting that year—a move Germany opposed.
Automakers have amplified concerns. In September, BMW proposed delaying the ban to 2050, with CEO Oliver Zipse calling the 2035 target a “critical error.” He urged replacing the policy with a lifecycle emissions accounting system covering vehicle production to disposal. Mercedes-Benz CEO and ACEA Chair Ola Källenius also declared the 2035 goal “unattainable,” citing infrastructure and technological gaps.
The debate underscores tensions between EU climate ambitions and industrial realities, with Germany leading calls for flexibility to safeguard automotive jobs and innovation.
