Finance

German court rejects bid to ban Mercedes and BMW's fossil-fuel cars

Published by Global Banking & Finance Review

Posted on March 23, 2026

1 min read

· Last updated: April 1, 2026

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KARLSRUHE, Germany, March 23 (Reuters) - Environmentalists suffered a setback on Monday when Germany's top appeals court threw out their cases seeking to ban Mercedes-Benz and BMW from selling new

German Court Rejects Legal Effort to Ban Mercedes and BMW Fossil-Fuel Cars

German Federal Court Decision on Combustion-Engine Car Ban

KARLSRUHE, Germany, March 23 (Reuters) - Environmentalists suffered a setback on Monday when Germany's top appeals court threw out their cases seeking to ban Mercedes-Benz and BMW from selling new combustion-engine cars from November 2030.

Background of the Lawsuit

  • The federal court of justice in Karlsruhe upheld lowercourt rulings against the lawsuits, brought by three managingdirectors from the DUH environmental lobby
  • The DUH had based its case on a "carbon budget" calculatedfor each of the two automakers
  • But the court ruled that no such budget had been allocatedto individual companies

Automakers’ Response

Mercedes-Benz and BMW Welcome the Ruling

  • Both Mercedes-Benz and BMW welcomed the ruling whilestressing their commitment to sustainability
  • The decision provides "legal certainty for companiesoperating in Germany", a BMW spokesperson said
Commitment to Sustainability

Both companies emphasized ongoing efforts to support environmental goals despite the court's decision.

Reporting and Editing

(Reporting by Ursula Knapp and Rachel More, editing by Thomas Seythal)

Key Takeaways

  • The Federal Court of Justice upheld lower‑court rejections of environmental lawsuits against Mercedes‑Benz and BMW, citing the absence of an allocated carbon budget per company
  • The court reaffirmed that assigning emission limits to specific manufacturers exceeds judicial authority and falls under political jurisdiction
  • Mercedes and BMW welcomed the ruling, emphasizing the clarity it brings for their sustainability efforts and business planning

References

Frequently Asked Questions

Why did the German court reject the bid to ban fossil-fuel cars from Mercedes and BMW?
The court found that no specific carbon budget had been allocated to individual companies, dismissing the DUH's argument.
Who brought the lawsuit against Mercedes and BMW?
Three managing directors from the DUH environmental lobby brought the lawsuits.
What was the basis of the DUH's legal case?
The DUH based its case on a calculated 'carbon budget' for both automakers, claiming this justified a ban.
How did Mercedes-Benz and BMW react to the court's decision?
Both welcomed the ruling and reiterated their commitment to sustainability, emphasizing the legal certainty it grants.
What impact does the decision have for companies operating in Germany?
The ruling provides legal certainty for companies like Mercedes-Benz and BMW, allowing ongoing sales of combustion-engine vehicles.

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