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Merz, Germany's auto executive leader, does not have a united stance regarding 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 party disagreements.

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 said during a press briefing with senior cabinet members following discussions that lasted late into the night on pensions and benefits.

The EU set an objective of a reduction of 100% in CO2 emissions for new cars and vans, by 2035. This has been interpreted as the end of internal combustion engines for new vehicles.

European automakers argue that 2035 is no longer achievable due to the competition with China and U.S. Tariffs. They also claim that they are fined for factors that are beyond their control, such as not enough charging stations.

Merz said that on Thursday, the government allocated an additional 3 billion euro ($3.5 billion) in order to boost sales of electric vehicles by providing subsidies to buyers with middle- and lower-incomes.

(source: Reuters)