German Chancellor Friedrich Merz is preparing to urge the European Commission to reconsider or ease the 2035 ban on new combustion-engine vehicles, a policy that currently mandates all newly sold cars in the EU to be zero-emission. The move reflects growing concern within Germany’s auto industry over the rapid shift to electric vehicles, heightened competition from Chinese manufacturers, and the economic implications for Europe’s largest car market.

Merz’s initiative comes at a time when German automakers, including Volkswagen, are seeking more flexibility to balance traditional engine production with the acceleration of electric-vehicle development. Easing the 2035 deadline could provide German manufacturers additional time to adjust their product lines, supply chains, and workforce planning.

Volkswagen Announces Strategic Leadership Change

Amid this policy debate, Volkswagen has announced a significant leadership shift. Ludwig Fazel has been appointed as the new Head of Group and Product Strategy, effective Monday. Fazel previously served as Chief Operating Officer of Volkswagen Group Components, where he oversaw key elements of the company’s global supply and production ecosystem.

He replaces Stefan Weckbach, whose departure has prompted Volkswagen to reorganize several strategic divisions as part of its push to strengthen competitiveness in electric mobility and advanced vehicle technologies. Fazel is expected to play a critical role in guiding Volkswagen’s long-term strategy as the company navigates regulatory shifts, increasing pressure from Chinese EV manufacturers, and the evolving demands of global markets.

Together, Germany’s political stance and Volkswagen’s leadership changes reflect a broader reassessment of how Europe’s automotive sector transitions toward cleaner mobility while remaining competitive globally.