Overview
- The chancellor urges the EU to drop the 2035 sales cutoff and has convened a crisis meeting with carmakers, suppliers, unions and regional leaders in Berlin today.
- The European Commission says it will re-examine the rule "as soon as possible," with media reporting potential tweaks that could allow plug‑in hybrids or range extenders beyond 2035.
- Coalition tensions persist, with Environment Minister Carsten Schneider not convinced about scrapping the target, while Finance Minister Lars Klingbeil backs a five‑year extension of EV tax breaks from 2026.
- Industry strain is deepening, with about 50,000 auto jobs lost over the past year, falling profits, high energy costs and new U.S. tariffs on EU cars.
- Competitive pressure from China is accelerating, with Jato estimating Chinese brands’ EU‑UK share at 5.1% after a near‑doubling and BYD sales up roughly 311%, as Porsche delays EV launches citing weak demand.