Germany's Merz heads to auto execs meeting without unified stance on EU's 2035 target

BERLIN, Oct 9 (Reuters) - Chancellor Friedrich Merz will meet executives from top German automakers later on Thursday without a unified government position on the European Union's plans to end the sale of carbon dioxide-emitting cars from 2035, he told journalists.

Thursday's statement backs away from the chancellor's previous line on pushing Brussels to drop the ban as his SPD coalition partners have struggled with internal party differences.

The government first wants to talk to the car industry about what it needs as well as wait for the outcome of the European Commission's review of the target due by year-end, Merz said.

"That is why, as agreed, we did not reach a final assessment yesterday evening. Instead, we want to engage in dialogue in order to arrive at an assessment through dialogue," he said at a press conference with senior cabinet members after discussions on pensions and job benefits that went deep into the night.

The EU has set a target for a 100% reduction of CO2 emissions from new cars and vans by 2035, which has been taken to mean the end of the internal combustion engine for new vehicles.

European automakers, which have been hit hard by competition from China and U.S. tariffs, argue that the 2035 target is no longer feasible, and that they face fines for factors beyond their control such as insufficient charging stations.

Merz also said on Thursday that the government had earmarked an additional 3 billion euros ($3.5 billion) to help boost the sales of electric cars by offering subsidies to middle and lower-income buyers.

($1 = 0.8612 euros)