Germany urges EU to ease 2035 petrol, diesel engine ban as auto job cuts rise

Germany on Friday intensified its push for the European Union to ease its planned 2035 ban on petrol and diesel cars, warning that strict rules could hurt jobs and slow recovery in Europe’s struggling auto sector.

Chancellor Friedrich Merz told EU chief Ursula von der Leyen that the bloc must adopt “technology-neutral, flexible and realistic” rules to meet climate goals without damaging industry. His letter comes at a time when German carmakers face weak demand, rising competition from China and heavy job cuts.

Merz said the EU should count emissions from all cars on the road, not only new models, and urged Brussels to support synthetic fuels, biofuels and advanced hybrids. “There is also potential for reducing emissions in the existing fleet,” he wrote, adding that blending quotas should be increased. He argued that easing the rules would protect Germany’s auto industry, which he sees as key to lifting Europe’s largest economy.

Stellantis CEO Antonio Filosa backed Germany’s stance on Monday, saying the proposals matched industry calls for more flexible emissions targets. Filosa warned that the sector needs “urgent and definitive action” to stop a decline made worse by slower EV sales and fierce Chinese competition.

Stellantis Chairman John Elkann also cautioned that Europe’s car industry faces an “irreversible decline” without softer rules and new measures to support small-car production, light commercial vehicle targets and faster fleet renewal.

Read more on Five things to know about the 48,700 auto job loss in Germany