MUNICH, Germany, Sept. 9, 2025, 3:48 p.m. – German automakers are touting their electric vehicles while together lobbying to loosen a ban on combustion engines, creating a curious paradox at the International Motor Show (IAA) Mobility fair. The industry finds itself caught between a committed electric future and a lingering combustion past.
This apparent contradiction stems from economic anxieties. The auto sector fears critically important financial losses and widespread job cuts among suppliers if the transition to electric vehicles happens too abruptly.
Did you know? Germany’s automotive industry is a major employer, directly and indirectly supporting millions of jobs. A rapid shift to EVs threatens a significant portion of these positions, notably within the extensive supply chain.
Markus Söder, the Bavarian Prime Minister, offered a sharp, ironic commentary on the situation as he toured the IAA in Munich. Chancellor Friedrich Merz, however, focused his remarks on praising the newly unveiled electric car models.
The auto industry, including a surprising stance from Volkswagen despite its leadership in electric car advancement, is advocating for an amendment to the combustion engine ban. Their proposal includes enabling the use of hybrid engines and synthetic fuels.
At the heart of the industry’s plea is the economic impact on suppliers and the potential for widespread unemployment. These concerns are driving the push to keep combustion and hybrid technologies viable alongside the accelerating shift to electric power.
Pro tip Synthetic fuels, or e-fuels, are produced using renewable energy and captured carbon dioxide. They offer a potential pathway to reduce emissions from existing combustion engines, but are currently expensive to produce and scale.
The automotive industry is navigating a complex transition, balancing innovation with economic realities.
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