Overview
- Chancellor Friedrich Merz said he has sent a letter to Commission President Ursula von der Leyen asking for exemptions after 2035 for plug‑in hybrids, battery hybrids and range‑extended EVs using highly efficient combustion engines.
- The CDU–SPD coalition also announced targeted buyer support, with a coalition paper outlining a €3,000 base grant for eligible purchasers plus €500 per child up to €1,000, and Bavarian leader Markus Söder citing plans for subsidies up to €5,000 for vehicles with substantial German content.
- European Commission officials said they will study Germany’s position and have signaled openness to some flexibility, with the executive due to clarify its approach on 10 December following consultations that closed on 10 October.
- Berlin argues the requested flexibility is needed to protect jobs and competitiveness in its auto sector, citing pressures from U.S. tariffs, Chinese competition, supply constraints and slower-than-expected EV uptake.
- EV‑focused manufacturers such as Volvo and Polestar, along with environmental group Transport & Environment, oppose any weakening of the 2035 zero‑emission sales goal.