Company cars' combustion remains unbanned, despite Merz's rejection of the potential restriction.
In a recent meeting with representatives of large German companies, German Chancellor Friedrich Merz has voiced his concerns about the European Union's (EU) potential plans to ban internal combustion engines (ICE) in large business fleets, including rental cars and company cars, from 2030 onwards. This move, if implemented, would accelerate the timeline from the earlier 2035 target for new cars and vans.
The EU Commission is currently in the process of preparing legislation that would oblige car rental companies and large firms to purchase only electric vehicles starting from 2030. This plan is part of a broader review of the vehicle emissions regulations and industrial policy, with the Commission actively considering adjustments to its 2023 legislation on CO₂ emissions, including potential flexibility in achieving the 2035 zero-emission target and addressing technological and market realities.
However, no specific date or decision regarding the potential ban on ICE engines in rental car fleets has been provided, and no verified information is available on Merz's official view or reaction on this issue as of July 2025.
Merz emphasized that the automotive industry, one of the core industries of the European continent, faces risks with restrictions on ICE vehicles. He advocates for consumer freedom in vehicle choice and a technology-open approach, warning against a narrow focus on technologies that may not be market-ready by the proposed date.
Merz also highlighted Germany's significant contribution to the EU budget and emphasized Germany's special role within the EU. He made these statements during a meeting with representatives of large German companies, expressing his concerns about the slow transition to electric vehicles potentially missing climate targets.
The EU Commission has not yet made a decision on future climate requirements for company cars. The Commission is currently in the consultation phase, with no concrete proposals made. Merz announced an "intense discussion" on the future direction of vehicle technology, reflecting the ongoing debate within the EU about the best path forward for the automotive industry.
As the EU continues to review its vehicle emissions regulations and industrial policy, the future of the automotive industry remains uncertain. Merz's stance on the potential ban on ICE vehicles in business fleets will be closely watched as more information becomes available.
- The EU Commission's plan to mandate car rental companies and large firms to purchase only electric vehicles from 2030 is part of a broader review of policy and legislation, which includes adjustments to its 2023 emission regulations and a review of the automotive industry.
- German Chancellor Friedrich Merz has voiced his concerns about the potential ban on internal combustion engines (ICE) in large business fleets, emphasizing risks for the automotive industry, advocating for consumer freedom, and warning against a narrow focus on technologies that may not be market-ready by the proposed date.
- The future of the automotive industry in the EU remains uncertain as the EU Commission continues its review of vehicle emissions regulations and industrial policy, with no specific decision on future climate requirements for company cars made yet. The ongoing debate and Merz's stance on the potential ban on ICE vehicles in business fleets will be closely watched.
