"Never has state support been more critical to the survival of Germany's auto industry . Thursday's Autogipfel ("auto summit," in English) a high-stakes meeting in Berlin of political leaders, automotive executives and unions came at a moment of deep crisis as the sector faces stagnation, mass layoffs and a rocky transition to electric vehicles (EVs)."
"Once dominant in engineering and brand prestige, the likes of Volkswagen, BMW and Mercedes-Benz now lag behind Chinese rivals in software innovation and adopting EVs. China's BYD, Nio and others are expanding aggressively into the European market, offering cheaper, tech-savvy EVs. US President Donald Trump's protectionist policies have also dealt a blow to Germany's dominant export sector."
"Showing that the government's ready to stand by the auto industry in tough times, German Chancellor Friedrich Merz said after the summit that he would "do everything possible" to scrap the European Union's planned ban on the sale of new internal combustion engine vehicles beginning in 2035. The measure, introduced in 2022, would levy heavy fines on automakers that fail to reduce carbon emissions."
State support has become critical as Germany's auto sector confronts stagnation, mass layoffs and a difficult shift to electric vehicles. Major manufacturers such as Volkswagen, BMW and Mercedes-Benz trail Chinese competitors in software and EV adoption. Companies like BYD and Nio are expanding into Europe with cheaper, tech-focused EVs. US protectionist measures have weakened Germany's export-dependent industry. Chancellor Friedrich Merz pledged to oppose the EU's planned ban on new internal combustion engine vehicle sales from 2035 and to push for technological pathways toward climate neutrality without an unrealistic fixed date. The EU ban, introduced in 2022, faces review amid heavy industry lobbying.
Read at www.dw.com
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