Germany’s perspective on its car industry feels somewhat outdated. When Bavaria’s prime minister, Markus Söder, describes the car as Germany’s destiny and the heart of its economy, warning that “without the car, collapse is imminent,” he seems to be referring to a combustion engine vehicle running on fossil fuels. This nostalgic loyalty to the heavy, polluting industries of the 20th century is now clashing with the pressing realities of the climate crisis.
Earlier this month, European car company leaders met with European Commission President Ursula von der Leyen at the Berlaymont building in Brussels. German manufacturers had two key requests: to overturn the EU’s planned 2035 ban on new CO2-emitting combustion engine cars and to ease the annual sales quotas for electric vehicles until then.
The outcome of the meeting wasn’t immediately clear. Some reports suggested the EU might allow hybrid cars to be sold after 2035. A decision is expected by December, and it seems likely the ban will be softened. A spokesperson mentioned that the commission would “carefully assess all input,” including potential “refinements” like allowing some plug-in hybrids to continue.
The car industry’s pushback against the 2035 deadline is part of a broader resistance to EU environmental policies. Pressure from industry and farming sectors has already led to the withdrawal of a pesticide reduction law, delays in anti-deforestation rules, and the cancellation of specific environmental reporting requirements for high-risk industries.
Ultimately, the EU should not give in to the German car industry. Reversing course would be harmful not just for climate goals and the environment, but for everyone involved, including the manufacturers themselves. The German car sector makes up about 5% of the country’s GDP but is already struggling against global competitors and lags nearly a decade behind in the shift to electric vehicles. Delaying the move to zero-emissions driving will only make it less competitive.
Before the Brussels meeting, carmakers lobbied heavily. Ola Källenius, head of the European Automobile Manufacturers Association and Mercedes-Benz, wrote a demanding open letter arguing that meeting CO2 targets for 2030 and 2035 is “simply no longer feasible” and called for the targets to be scrapped entirely.
The real issue is that the German car industry has been slow to act while rivals like Tesla and Chinese companies, supported by significant state subsidies, have built the expertise and reputation that Germany still lacks.
Some German media outlets have shown support for the car industry, with interviews and favorable opinion pieces. However, this deference won’t benefit the industry or the country in the long run.
The German auto sector employs around 770,000 people, not counting suppliers. A key part of their lobbying argument is that strict regulations will cost jobs. Yet car manufacturers are already cutting positions: 50,000 jobs were lost last year, more than in any other German sector. Continuing to produce combustion engine cars won’t prevent job losses in the future or even delay them significantly. The reason is clear: these are profit-driven businesses, not public services. The families with major stakes in Volkswagen and BMW—the Piëchs, Porsches, Klattens, and Quandts—are among Germany’s wealthiest individuals.
A Greenpeace protest in Berlin highlighted Germany’s push for exemptions from the EU-wide ban.The European Union is set to ban the sale of new combustion engine cars by 2035. Photo: Maja Hitij/Getty Images
Germany’s car industry holds a huge place in its economy and national identity, which gives these companies extra influence to voice their demands. Just days before the Brussels meeting, Chancellor Friedrich Merz appeared at the annual international auto show in Munich. Standing at a microphone in a bright hall, he used industry jargon to reassure company leaders he was listening: “We don’t want to limit ourselves to one solution; we want a competition of the best ideas and technologies.” But Merz’s argument would actually hinder the necessary evolution for the German car industry to survive.
“The future is electric,” von der Leyen stated in her State of the Union address two days before meeting with car manufacturers. This isn’t just an empty slogan. In August 2025, new electric vehicle registrations in Germany rose 46% compared to the previous year. The industry itself is divided on the issue. On the day of Merz’s speech, an open letter signed by 150 EV companies urged the commission president to “hold firm” on the 2035 ban. Audi’s head, Gernot Döllner, called the renewed debate over the phase-out “counterproductive.”
Car giants often get what they want. In May, the European Commission relaxed rules on the share of climate-neutral vehicles in new fleets, giving manufacturers two extra years to meet targets. This move seems to have spared many companies from hefty fines—except Mercedes-Benz, which is expected to be the only EU carmaker to miss its emissions goals. Mercedes is led by Kallänius, who has strongly opposed these targets.
The 2015 diesel scandal—where companies like Volkswagen cheated on emissions tests—revealed the lengths the industry will go to. Even while deceiving the German government and tarnishing the “Made in Germany” reputation, they faced little consequence. In fact, manufacturers receive millions in research subsidies each year for projects like self-driving cars; BMW alone reported getting at least €36 million from Germany and the EU in 2024.
Adhering to the 2035 plan and transitioning to cleaner technology is crucial, especially as broader environmental progress stalls. Both citizens and businesses need stability and predictability during these economically uncertain times. This can only be achieved by acknowledging the urgent need to modernize—not by scrapping regulations and reversing progress.
Tania Roettger is a journalist based in Berlin.
This article was amended on 29 September 2025 to remove a potentially misleading reference to cleaner “fuels” in the final paragraph.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic German identity isnt defined by cars Brussels must stand up to the powerful auto industry based on the perspective of Tania Roettger
BeginnerLevel Questions
1 What is the main argument of this opinion piece
The main argument is that Germanys national pride and economic focus should not be so heavily tied to its car industry It calls on the EU government in Brussels to create stronger regulations that push the auto industry toward a more sustainable future even if its difficult
2 Why does the author say German identity isnt defined by cars
The author believes that Germany has a rich culture history and values beyond automotive engineering Relying so much on cars for national identity holds the country back from embracing necessary environmental and technological changes
3 What does Brussels must stand up to the auto industry mean
It means that the European Unions governing body needs to be brave and enforce strict environmental laws on car manufacturers rather than giving in to the industrys lobbying power
4 Why is the auto industry considered powerful
The auto industry is a huge employer and a major part of the German economy Because of this it has significant influence over politicians and can lobby to delay or weaken environmental regulations that might hurt its traditional business models
IntermediateLevel Questions
5 What are the specific problems with the current power of the auto industry
The problems include slowing down the transition to electric vehicles resisting ambitious climate targets and potentially causing Germany to fall behind in green technology which could hurt its economy in the long run
6 What kind of regulations might Brussels impose
Examples include banning the sale of new petrol and diesel cars by a specific date setting very strict CO2 emission limits and investing heavily in public transportation and EV charging infrastructure instead of favoring carcentric policies
7 How could reducing the focus on cars benefit Germany
It could help Germany become a leader in green technology improve air quality in cities meet its climate goals and allow other innovative sectors to flourish creating a more diverse and futureproof economy
8 Isnt this a risk to German jobs
While there is a risk to jobs in traditional manufacturing the argument is that resisting change is a bigger longterm risk
