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Germany Presses EU To Soften 2035 Combustion-Car Ban as Merz Backs E‑Fuel Flexibility

Germany casts e‑fuel carve‑outs as relief for a struggling auto sector.

Overview

  • Chancellor Friedrich Merz said there must not be a “brutal rupture” at the end of 2035 and reiterated that electric drivetrains remain the primary pathway.
  • Automakers, suppliers, unions and regional leaders gathered in Berlin, with BMW, Mercedes‑Benz and Volkswagen stepping up public pressure for regulatory leeway.
  • Industry representatives are requesting EU exceptions for alternative fuels, including biofuels and synthetic e‑fuels, to keep some combustion models viable beyond 2035.
  • EU leaders are set to take up the issue at a European Council meeting in Brussels in about two weeks, and the European Commission plans to revisit the timeline next year.
  • Germany points to falling profits, plant closures and roughly 50,000 subcontractor job losses, citing competition from Chinese EVs and gaps in charging infrastructure.