"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 comes 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."
"To help boost the sector's fortunes, German Chancellor Friedrich Merz has called for scrapping 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. Germany's conservatives have labeled this a "straitjacket" on automakers' competitiveness. The ban is currently subject to a review by the European Commission amid fierce lobbying by the auto sector."
Germany's auto industry faces deep crisis with stagnation, mass layoffs and a difficult shift to electric vehicles, increasing the need for state support. Legacy makers such as Volkswagen, BMW and Mercedes-Benz trail Chinese rivals in software innovation and EV adoption while Chinese companies expand aggressively in Europe with cheaper, tech-savvy models. US protectionism has weakened Germany's export-oriented sector. Chancellor Friedrich Merz urges scrapping the EU's planned 2035 ban on new internal combustion engine sales, calling the rule a constraint on competitiveness, while the ban remains under European Commission review amid heavy industry lobbying.
Read at www.dw.com
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