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German Leaders and Carmakers Step Up Push To Loosen EU 2035 Car Emissions Rule

The chancellor has called an automotive summit to address industry concerns over jobs.

Overview

  • CSU leader Markus Söder renewed his demand to overturn the EU plan to allow only zero‑CO₂ new car registrations from 2035, warning it threatens hundreds of thousands of jobs.
  • Ola Källenius of Mercedes‑Benz urged abandoning a strict ban in favor of flexibility that keeps hybrids and advanced combustion engines in the mix to protect acceptance and employment.
  • Källenius cautioned that Europe lacks a full battery value chain and said China is effectively a monopolist in refining, arguing for a strategic partnership with Beijing.
  • Chancellor Friedrich Merz said he will invite automakers and suppliers to an Automobilgipfel on the sector’s future, as companies grapple with a sales slowdown and rising Asian competition.
  • VW chief Oliver Blume welcomed the planned summit, saying the company remains flexible on powertrains while maintaining that e‑mobility represents the future.