Germany is at a crossroads over the future of its car industry as the EU plans to ban new combustion-engine vehicles from 2035. Tensions rise as Chancellor Friedrich Merz, who calls for technology neutrality and synthetic fuels, and Environment Minister Carsten Schneider, who backs the ban and faster adoption of electric vehicles.
Chancellor Friedrich Merz expressed his opposition to the EU’s 2035 combustion engine ban in a pre-recorded interview with ntv. He stated, “I do not want Germany to be among the countries that stick to this wrong ban.” Merz emphasized that the ban should not be maintained in its current form and advocated for a discussion guided by technological openness in the coming weeks.
Merz acknowledged that the issue remains unsettled within the coalition, with Environment Minister Schneider “not yet convinced” to abandon the ban. The Chancellor hopes that a common position can be established ahead of Thursday’s planned meeting with the automotive industry at the Chancellery. He also noted that the European Commission is expected to make a decision on the matter before the end of the year.
Merz highlighted the ongoing relevance of diesel engines, particularly in the heavy truck sector. He warned that prohibiting this technology could force German manufacturers to stop producing diesel engines, a “serious mistake,” given global continued research in this area. Merz also suggested that synthetic fuels could eventually allow combustion engines to operate in an environmentally friendly manner, advocating for enabling technologies rather than imposing bans.
In contrast, Environment Minister Carsten Schneider affirmed Germany’s commitment to the EU’s 2035 ban. Speaking to Die Zeit, Schneider described the EU mandate as “realistic,” noting that "That's still ten years' time – I trust our engineers to do that." Starting in 2035, "new cars in the EU will no longer emit CO₂, or the manufacturers will pay fines. That's the current legal situation."
Schneider called electric mobility the future and stressed that legal and regulatory certainty is essential for accelerating the industrial transition. He criticized recent calls to reconsider the combustion engine ban, particularly by CSU leader Markus Söder, saying such debates overshadowed the International Motor Show (IAA) and represented a major economic misstep.
The SPD minister emphasized that the market already offers high-quality electric models, describing them as “really great cars.” While the automotive sector is divided, Schneider noted that many companies have already adapted to new climate regulations and deserve protection and certainty.
The European Automobile Manufacturers Association (ACEA) reported a 30.2% year-on-year increase in the registration of pure electric vehicles in August. Electric cars accounted for 15.8% of total registrations, while hybrid vehicles led with 43.5%, and diesel and petrol vehicles combined represented 37.5%. This trend highlights the accelerating shift toward electrification, despite ongoing political debates.
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