Manufacturers fear the looming EU ban will deal them another blow, complaining they have not had enough time to build up competitive EV offerings while demand for battery-powered cars is moving far more slowly than expected in Europe. After holding talks with auto industry leaders, Merz vowed to fight against an abrupt total ban from 2035 of sales of new fossil fuel-burning cars. "I will do everything in my power to ensure that this does not happen," he told a press conference.
The new tax break will be available even to people who don't itemize deductions, but there are some caveats that could limit its reach, including vehicle assembly location and loan issuance date.