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)