Germany to urge EU to soften 2035 combustion car deadline

The German coalition government has agreed to push the EU to weaken the existing 2035 deadline to register new combustion engine vehicles. Following a late-night meeting of the coalition parties’ top representatives, chancellor Friedrich Merz said he would write to the European Commission to outline the German position aiming for “a reconciliation of competitiveness and climate action.”

Germany’s stance on the future of combustion engine cars is seen as pivotal for an upcoming EU package on the automotive sector, which includes updating regulation on vehicle fleet emissions limits. The Commission is expected to release details on the package on 10 December. Germany’s car industry association VDA had called for a softening of the EU’s 2035 ban earlier this year.

The chancellor from the conservative Christian Democrats (CDU) said the EU's current plans for a combustion engine phase-out would jeopardise Germany’s strength in the automotive sector. He would therefore ask the Commission to review the regulation for vehicle fleets and “adapt it” to allow the registration of “highly efficient” combustion engine cars and plug-in hybrid vehicles also after the target year.

“Climate action should not be compromised by this,” Merz argued, adding that emissions reduction targets should be achieved in a way that “remains technology-open and saves jobs.” The move would mean “pulling an important lever for European industry” and especially the automotive sector, which is in a “precarious” situation, he added.

The head of Merz’s junior coalition partner, finance minister Lars Klingbeil from the Social Democrats (SPD), said his party had changed its position because “adjustments were necessary” to protect jobs. While the CDU had made its opposition to the 2035 ban an election campaign promise, the SPD so far had been critical of weakening the existing EU plans.

The SPD leader said earlier this month that requirements for domestically sourced products could tip the balance for his party to accept a softer stance on the technology’s phase-out. “We agree that the future is electric,” Klingbeil said, adding that more technology-openness and flexibility are needed to get there.

Markus Söder, head of the CDU’s Bavarian sister party Christian Social Union (CSU), said that abolishing the “very strict” end to combustion engine car registrations would give the industry new confidence. Germany and Europe must not “give it all away to Asia”, but instead actively defend their automotive sector as a backbone of industrial strength, he argued. Söder added that vehicle emissions should not be measured “only at the tailpipe” to avert fines for the carmakers.  

NGOs say decision will damage climate and industry

Transport and environmental NGOs lambasted the decision. “Those who think they can save future jobs and value creation in Germany with combustion engine technology that is already outdated today consciously close their eyes to reality,” said Sebastian Bock, head of Transport & Environment Germany. Leaving loopholes for combustion engines would obstruct the scale-up of electric mobility and risk wasting money on a technology that is “long past its prime.” Moreover, Chinese manufacturers already lead in plug-in hybrid sales, a technology Bock described as almost as environmentally damaging as combustion engines.

Green transport NGO VCD said the decision was the opposite of what was needed to set off a fast expansion of electric mobility. “This will damage the climate and our industry at the same time,” said the group's head Christian Rohleder. The change in position would undermine planning security and effectively sanction companies that had prepared according to the existing agreement on the 2035 deadline. E-fuels that could potentially be used in climate-neutral combustion engines are the wrong way forward, Rohleder argued. “E-fuels will remain scarce and expensive.”

Environmental Action Germany (DUH) accused the government of rewarding efforts by carmakers including BMW, Mercedes-Benz and others to undermine climate action in the sector. “Even under current rules on ending combustion engines, the transport sector will overshoot its emissions limit by millions of tonnes of CO2,” said DUH head Jürgen Resch. He said DUH would challenge the carmakers’ course in court in a lawsuit expected to be heard by a federal court in March 2026.

Greenpeace called the decision "catastrophic news" for Germany as a car industry location, climate action, and all those hoping for affordable electric cars. The group called on European Commission president Ursula von der Leyen to ignore Germany's plea and stick to a clear deadline for the registration of new combustion engine cars.