Coalition committee: Dispute over the end of combustion engines and the future of the auto industry

Coalition committee: Dispute over the end of combustion engines and the future of the auto industry

On October 9, 2025, the leaders of the government coalition met in the Chancellery for a decisive coalition committee. The discussions focused on two central topics: the future of the German auto industry and the upcoming reform of citizens' money. Despite the explosive topics, no concrete decisions were announced for the time being, which kept the mood in the room rather tense. Interesting developments are on the horizon as an auto summit approaches with industry representatives and unions to find solutions to the automakers' crisis. Deutschlandfunk reports that tensions are high in the discussion about the EU-wide ban on new vehicles with combustion engines.

A hotly debated topic is the planned ban, which will no longer allow new vehicles with combustion engines in the EU from 2035. The Union parties (CDU/CSU) have already made it clear that they want to overturn this regulation, while the SPD is sticking to the strict requirements. In addition, the SPD is open to a possible flexibilization of the combustion engine phase-out, which raises hopes of a compromise. At the political level, prominent prime ministers such as Markus Söder (CSU) and Olaf Lies (SPD) are calling for the ban on combustion engines to be relaxed and criticizing the target date as no longer realistic. They advocate the legal use of hybrid vehicles after 2035. The time emphasizes that Lower Saxony, as a co-owner of VW and Bavaria with its large automobile manufacturers, is in a particularly critical situation.

A 10-point plan for the auto industry

The discussion is becoming even more explosive thanks to a newly presented 10-point plan by Markus Söder, the CSU boss. Under the title “Yes to the car, yes to Germany as a car country,” Söder plans to demand massive support for the auto industry. In this plan, he urgently warns that the ban on cars with combustion engines from 2035 could endanger hundreds of thousands of jobs. The CSU boss sees the situation in the industry as drastic and is calling for a clear automotive strategy. ZDF reports that Söder is also making demands to reduce CO2 savings targets and expand the charging infrastructure.

While Söder is clearly speaking out against the planned ban, other industrial leaders are also taking a stand. VW boss Oliver Blume emphasizes the need for a smooth transition strategy to e-mobility and flexibility in drive types. SPD leader Lars Klingbeil, on the other hand, is calling for comprehensive reviews of further government funding for electric cars and is in favor of expanding the charging infrastructure. Along with these concerns, the long-term challenges of competitiveness are at the forefront. Mercedes boss Ola Källenius recently warned that the car industry must remain competitive on the international market.

The coalition is showing progress in the further debate about citizens' money. Federal Health Minister Nina Warken (CDU) plans to discuss proposals for health insurance financing. The upcoming reforms appear to be on the right track, even if the path to them is riddled with many negotiations.

The coalition committee is seen by many as groundbreaking, not only for the automotive industry, but also for the social systems in Germany. It remains to be seen how quickly and efficiently the governing parties can reach viable solutions. All eyes are now on the upcoming meeting on Thursday, where the big questions will be discussed and hopefully answers found.