German Chancellor Friedrich Merz (CDU) will host crisis talks on Thursday, October 9th—with leaders from the country’s auto industry to address the sector’s mounting challenges.
Major players—including Volkswagen, BMW, and Mercedes-Benz—face a slowdown in sales and profits, fierce competition from Chinese electric vehicle (EV) makers, and the ongoing effects of U.S. tariffs.
The two-hour meeting in Berlin will include top industry executives, government ministers, and union representatives. The talks will focus on the European Union’s plan to end sales of new internal-combustion vehicles by 2035, as German automakers warn that the transition to EVs is progressing more slowly than expected.
Merz has called for the EU plans to be scrapped, while coalition partners in the Social Democratic Party of Germany argue the deadlines should remain. A potential compromise may be proposed to Brussels, softening but not fully removing the ban.
Finance Minister Lars Klingbeil is also considering extending EV tax incentives, currently due to expire in 2026, by five years to support the shift to electric mobility.
The talks follow a wave of corporate cuts and economic strain in Germany. Last month, Lufthansa announced plans to cut 4,000 jobs, focusing on administrative roles, while Bosch revealed intentions to reduce its workforce by 13,000 positions. Germany’s unemployment has risen to 2.98 million, the highest in a decade, highlighting the broader economic challenges facing Europe’s largest economy.
Experts remain cautious about the outcome of Thursday’s meeting. They potentially welcome such announcements as those on increased investment in battery research, while remaining sceptical about Europe-wide policies in future.
