The Prague Post - Merz ramps up pressure on EU over electric car shift

EUR -
AED 4.118085
AFN 72.327475
ALL 90.580734
AMD 404.578149
ANG 2.00694
AOA 1028.259752
ARS 1712.747989
AUD 1.598703
AWG 2.021198
AZN 1.903137
BAM 1.954737
BBD 2.257372
BDT 138.614608
BGN 1.959896
BHD 0.422928
BIF 3361.771555
BMD 1.12133
BND 1.431721
BOB 13.174834
BRL 5.665411
BSD 1.12079
BTN 106.199765
BWP 15.396626
BYN 3.314197
BYR 21978.070272
BZD 2.254074
CAD 1.570614
CDF 2597.000736
CHF 0.920786
CLF 0.028087
CLP 1105.418227
CNY 7.488298
CNH 7.481834
COP 3575.349861
CRC 511.47164
CUC 1.12133
CUP 26.89837
CVE 110.197694
CZK 24.281841
DJF 199.581449
DKK 7.474596
DOP 68.775847
DZD 151.142973
EGP 62.00673
ERN 16.819952
ETB 183.578653
FJD 2.508639
FKP 0.838026
GBP 0.837129
GEL 2.903798
GGP 0.838026
GHS 12.989935
GIP 0.838026
GMD 82.978397
GNF 9919.604792
GTQ 8.565303
GYD 234.442488
HKD 8.793319
HNL 30.086636
HRK 7.534896
HTG 146.849475
HUF 366.175937
IDR 20248.250369
ILS 3.491152
IMP 0.838026
INR 106.312468
IQD 1699.075884
IRR 2054697.270937
ISK 136.19673
JEP 0.838026
JMD 177.933223
JOD 0.79498
JPY 175.966951
KES 145.61615
KGS 98.059312
KHR 4559.377873
KMF 492.842984
KPW 1009.197061
KRW 1485.594095
KWD 0.348038
KYD 0.933992
KZT 502.066929
LAK 25227.279049
LBP 100365.711751
LKR 372.037651
LRD 191.095212
LSL 18.485046
LTL 3.310997
LVL 0.678282
LYD 7.180095
MAD 11.000817
MDL 20.129052
MGA 5082.235805
MKD 61.586768
MMK 2355.184548
MNT 4036.851961
MOP 9.051777
MRU 44.786641
MUR 52.713464
MVR 17.335666
MWK 1943.442974
MXN 20.998112
MYR 4.579406
MZN 71.602163
NAD 18.485046
NGN 1492.434425
NIO 41.247566
NOK 10.457865
NPR 169.903923
NZD 1.969269
OMR 0.431087
PAB 1.12079
PEN 3.850406
PGK 5.01927
PHP 71.105777
PKR 310.203282
PLN 4.377565
PYG 6426.504666
QAR 4.096754
RON 5.3474
RSD 117.507568
RUB 91.832024
RWF 1656.499041
SAR 4.209702
SBD 9.054269
SCR 15.747974
SDG 674.478168
SEK 11.115
SGD 1.432353
SHP 0.83797
SLE 25.734597
SLL 23513.736798
SOS 640.551608
SRD 42.217519
STD 23209.269443
STN 24.486682
SVC 9.806666
SYP 14579.533814
SZL 18.482947
THB 37.822525
TJS 10.305503
TMT 3.935869
TND 3.340268
TOP 2.699893
TRY 55.772268
TTD 7.605863
TWD 36.560186
TZS 2965.91809
UAH 50.505031
UGX 4802.388013
USD 1.12133
UYU 44.935159
UZS 13345.741339
VES 986.533792
VND 28976.852191
VUV 133.357612
WST 3.100149
XAF 655.957
XAG 0.020789
XAU 0.000279317907
XCD 3.03045
XCG 2.019901
XDR 0.792839
XOF 655.957
XPF 119.331742
YER 264.744902
ZAR 18.51282
ZMK 10093.325175
ZMW 22.499763
ZWL 361.06784
SSP 6442.957706
MXV 2.370051
  • BCC

    -1.7350

    76.555

    -2.27%

  • RYCEF

    -0.9500

    16.05

    -5.92%

  • RIO

    -1.2750

    82.865

    -1.54%

  • RBGPF

    -0.7200

    70.53

    -1.02%

  • NGG

    -1.1800

    81.46

    -1.45%

  • BP

    1.1650

    51.215

    +2.27%

  • BCE

    -0.2850

    20.525

    -1.39%

  • BTI

    -1.3750

    59.095

    -2.33%

  • VOD

    -0.4950

    15.625

    -3.17%

  • JRI

    0.0450

    10.725

    +0.42%

  • RELX

    -0.3400

    40.28

    -0.84%

  • CMSC

    0.1070

    19.707

    +0.54%

  • GSK

    -0.8100

    50.4

    -1.61%

  • AZN

    -2.7700

    169.8

    -1.63%

  • CMSD

    0.0260

    19.626

    +0.13%

Merz ramps up pressure on EU over electric car shift
Merz ramps up pressure on EU over electric car shift / Photo: Tobias SCHWARZ - AFP

Merz ramps up pressure on EU over electric car shift

German Chancellor Friedrich Merz called Tuesday for "more flexibility" from the EU in the transition to electric cars as resistance grows over plans to phase out combustion-engine vehicle sales by 2035.

Text size:

Merz made the appeal at the opening of the IAA motor show in Munich, as Europe's struggling automakers line up to plead for the bloc to reconsider the plan aimed at combating climate change.

German titans VW, BMW and Mercedes-Benz as well as US-European giant Stellantis have voiced concerns as they struggle to build up competitive electric vehicles (EV) against Chinese rivals like BYD.

While he did not openly criticise the EU's deadline to halt sales of new combustion engine cars in a decade, Merz said he wanted to see "more flexibilty" in European regulation.

"We are of course committed to the transition to e-mobility," the conservative leader, who took office in May, told the show.

But he added that "we need smart, reliable and flexible European regulation -- it is more necessary than ever".

"We want to achieve climate protection as cost-effectively as possible through technological openness. Unilateral political commitments to specific technologies are fundamentally the wrong economic policy approach."

Markus Soeder, the leader of Bavaria state where the motor show is taking place and a political ally of Merz, was more blunt.

"This combustion engine ban is wrong," he told the show.

"We need other options because, to be perfectly honest, combustion engines still have a future. Electric mobility will prevail in the long term but we need significantly more time to organise the whole thing in Europe."

- 'Supportive' speeches -

Jan Vlasak, who works in software for a German carmaker, praised the speeches as "really supportive of the automotive industry".

The 35-year-old agreed the 2035 ban should be reviewed, calling for it to be pushed back by five to 10 years.

A stuttering shift to EVs is one of the major challenges facing Europe's auto sector. Manufacturers have invested huge sums in the transition, but sales have grown far more slowly than anticipated.

On top of that, the industry has faced rising production costs at home along with fierce competition in China from BYD and other EV makers that has eroded sales for foreign manufacturers in the world's biggest auto market.

In Germany, the auto sector has already shed more than 50,000 jobs over the past year, according to EY.

Volkswagen is planning 35,000 layoffs between now and 2030 and taking the unprecedented step of halting production at two of its sites in Germany.

Plans for redundancies have been coming thick and fast at Porsche, Audi, and at hundreds of German auto sector suppliers.

Merz is planning to host meetings with key auto sector players soon to chart a way forward.

"Our goal is for Germany to remain one of the world's leading places for automotive and manufacturing in the future -- we want to shape the transformation of the automotive industry," he said.

- Chinese competition -

On the other side of the argument, more than 150 businesses in the EV sector wrote an open letter to EU chief Ursula von der Leyen on Monday urging her to "not row back" on the 2035 target.

When the IAA winds down on Friday, carmakers are expected to have a meeting with von der Leyen in Brussels to discuss how to save the sector.

Underlining the competition the German car sector faces, more Chinese carmakers are expected at the fair than ever before.

Fourteen Chinese carmakers -- as opposed to just 10 European ones -- are displaying new models.

Around 100 of the 700 firms taking part overall in the IAA will be from China, up 40 percent from the last show in 2023.

Chinese carmakers there range from BYD, whose sales in Europe rose dramatically in the first half of this year, to GAC, which is taking its first steps in the European market.

BYD on Monday presented its compact Dolphin Surf model, which has been on sale in Europe since May for around 20,000 euros ($23,500).

From later this year it will be produced in a new facility in Hungary, with the company hoping to avoid EU tariffs on Chinese imports.

Volkswagen is trying to fight back with its own models at the more affordable end of the market.

L.Bartos--TPP