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Merz Seeks Flexibility on EU 2035 Car Rule as Söder Presses Repeal at IAA

The clash sets up urgent talks in Brussels this week followed by a German auto summit in October.

Overview

  • Opening the Munich show, Chancellor Friedrich Merz backed “technology openness” and called for more flexible regulation of the EU plan that allows only emissions‑free new cars from 2035.
  • Bavaria’s Markus Söder labeled the EU measure “wrong” and demanded a course change, while auto lobby chief Hildegard Müller urged a “realitätscheck” and looser fleet CO2 rules.
  • SPD leaders warned against weakening targets and stoking uncertainty, and Green leader Katharina Dröge reaffirmed support for 2035 after clarifying weekend remarks about timing.
  • Transport & Environment said most EU makers are on track for current fleet limits and flagged Mercedes as a likely exception if rules are not diluted further.
  • German brands unveiled new EVs to fend off Chinese rivals, with VW touting sub‑€25,000 models, Mercedes presenting an electric GLC, and BMW launching its Neue Klasse iX3 as Chinese exhibitors expand their footprint and Stellantis drops its all‑EV‑by‑2030 goal.