BERLIN, Aug 16 (Reuters) - Germany must exert pressure on auto companies to accelerate the transition to electric cars, Chancellor Angela Merkel said on Wednesday as German firms try to mend their reputation after a diesel emissions scandal.

In an interview on YouTube just six weeks before a federal election, Merkel also said she would invite local governments to a meeting on Sept. 4 to discuss toxic emissions. Maybe more than 500 million euros ($585.65 million) would be made available to a planned fund to improve urban transport infrastructure, she said.

Merkel also expressed concern about whether auto companies were sufficiently innovative in the right areas.

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(Reporting by Andreas Rinke and Paul Carrel; Writing by Madeline Chambers) ((Madeline.Chambers@thomsonreuters.com; +493028885230; Reuters Messaging: ann.chambers.reuters.com@reuters.net))