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Germany's Merz will meet with car bosses, but without a unified position on the EU's 2035 goal

He told journalists that Chancellor Friedrich Merz would meet with executives of top German automakers on Thursday, but without a united government position regarding the European Union plans to stop the sale carbon dioxide-emitting vehicles by 2035.

The statement on Thursday reverts to the previous position of the chancellor, who had urged Brussels to lift the ban because his SPD coalition partners are struggling with internal divisions.

Merz stated that the government wants to first talk to the auto industry to find out what they need, and then wait to see the results of the European Commission review of the deadline due at the end of the year.

"That's why, as we agreed, we didn't reach a final evaluation yesterday evening. We want to engage in dialogue to reach an assessment by dialogue," he stated at a news conference with senior cabinet officials after long-lasting discussions about pensions and benefits.

COALITION PARTNER WANTS TECHNOLOGICAL FREEDOM

Merz announced that it would also be providing an additional 3 billion Euros ($3.5 billion) of subsidies for electric vehicles purchased by households with middle- and low-incomes.

Before the meeting, SPD reaffirmed their commitment to 2035 climate targets but called for more flexibility in the transition up until that time.

At a press conference, SPD Finance Minister Lars Klingbeil said: "We need a clear technology freedom rather than rigid ideologic requirements."

He said that although there are still different ways to reach the goal, Thursday's meeting would be a big step in the right direction.

CAR INDUSTRY WANT MORE TECHNOLOGY OPTIONS

The EU set a goal of a reduction of 100% in CO2 emissions for new cars and vans, by 2035. There are also intermediate targets for 2030, which is taken to mean that the internal combustion engines will be phased out for new vehicles.

The deadline is unrealistic, say European automakers who are facing stiff competition in China and U.S. Tariffs.

They urge Brussels to extend deadlines for compliance and expand the definition of acceptable technology.

Hildegard Müller, the head of Germany's VDA automobile association, will be attending the meeting. She said that plug-in hybrids, range extenders, and other vehicles should still be available to consumers.

Ola Kaellenius, CEO of Mercedes-Benz, also stated that a certain percentage of combustion engines with high efficiency and electrification should be allowed beyond 2035.

In an interview published Thursday, he said: "We still need some side roads."

(source: Reuters)