Overview

• Chancellor Friedrich Merz reiterated he wants the EU ban on new combustion‑engine cars in 2035 changed, arguing for technology openness including continued diesel research and possible future synthetic fuels.
• Environment Minister Carsten Schneider countered that Germany should keep the 2035 timetable for planning certainty, noting current law requires new cars to emit no CO2 from that date or trigger fines for manufacturers.
• Finance Minister Lars Klingbeil announced plans to extend vehicle tax exemptions for new battery‑electric cars, saying he will introduce legislation to continue Kfz‑tax relief with benefits running up to 2035.
• The government has called an auto summit at the chancellery on Thursday with federal and state officials, automakers and unions to discuss the industry’s outlook and the 2035 rule.
• Automakers report soft demand for EVs despite broader model availability, as the sector contends with Chinese competition, U.S. trade frictions and transformation costs that have prompted cost cuts and job reductions.