Top brass from German politics and industry were in attendance on Tuesday to kick off the IAA Mobility automotive trade show in Munich, considered to be one of the world's most important meetings for the car industry.
German Chancellor Friedrich Merz used the opportunity to rally against planned EU-wide restrictions that are set to ban manufacturers from selling new combustion-engine vehicles from 2035.
Merz, a conservative, said "unilateral political commitments to specific technologies" were the "wrong economic policy approach."
Instead, the European Union should aim to combine "competitiveness and effective climate protection through openness to technology," he argued, using a common German term for action on climate change.
The chancellor also stressed the need for Germany to become more competitive again, in light of the sector-wide struggles that have been facing German car manufacturers for several years, including increased competition from abroad, a drop in sales in the Chinese market and new US tariffs.
EU ban controversial
Some EU countries have backtracked on a phase-out of the combustion engine, particularly those with a major car industry, including Germany.
While the move is intended to curb climate-damaging emissions, conservative and right-wing politicians have argued that it will further stifle Europe's struggling carmakers, which are faced with increasing competition from China.
Earlier this year, the commission announced it would review the de facto ban on sales of new cars with combustion engines this year, after European Commission President Ursula von der Leyen held out the prospect of exemptions for vehicles powered by e-fuels.
Industry urges change of course
The German Association of the Automotive Industry (VDA), the trade show's organizers, also called for changes to the EU's climate policies.
VDA President Hildegard Müller urged for a change of course regarding the combustion engine ban but also called on Brussels to review its carbon dioxide fleet emission targets.
Changing course was not a departure from climate neutrality but would contribute to its success, she argued.
Consumers are not yet sufficiently prepared to switch to electric mobility, said Müller. Anyone who sticks to targets "without a sense of reality" and fails to see that there are various technological options available worldwide for a successful transport transition is jeopardizing not only growth, prosperity and jobs, but also the goal of climate neutrality, the industry representative said.
Merz impressed by innovation on display
The heads of major German carmakers have made similar calls in the past, and representatives of suppliers Schaeffler, Mahle and ZF repeated the demands to Merz as he toured the trade show later on Tuesday.
At the end of the tour, Merz hailed the technologies on display.
The chancellor appeared to be particularly impressed by the showcased range extenders, small combustion engines used to increase the range of electric cars.
During his stopover at the Mahle exhibition booth, he stressed his desire to do everything possible to ensure that the technology also hits the roads in Europe.
Major presence of Chinese brands
At the opening of the fair, Müller announced that the IAA would be hosted in Munich for another six years - or three more times for the show held every other year.
This year's spotlight is on new electric models from German carmakers. Manufacturers including BMW, Mercedes, Volkswagen and Audi are under pressure after all posted sharp profit declines in the first half of the year.
The show, which is of major importance to the automotive industry, as well as the logistics and transport sectors, is also seeing a record presence from Chinese companies.
According to preliminary VDA figures, 116 exhibitors from China are taking part — more than from any country other than Germany itself.
Climate protests outside
Ahead of the opening, a group of demonstrators gathered outside the IAA grounds to protest against the car industry.
In a lake outside the trade fair grounds, a car roof and a dinosaur head were protruding from the water in what protest group Attac described as an "autosaur" symbolizing a car industry that is no longer viable.
Protesters on a small boat were holding up a banner calling for the "autosaur" to go under.
They also called for "buses and trains instead of car madness."
