Berlin: Germany will host an auto summit on Oct. 9 to discuss ways to boost the competitiveness of the German auto market amid rising competition from the US and China, according to a statement. The summit will be attended by German Chancellor Friedrich Merz and auto industry representatives, manufacturers, suppliers, and union representatives in Berlin, said Steffen Meyer, first deputy spokesperson, in a recent statement.
According to Anadolu Agency, Vice-Chancellor and Finance Minister Lars Klingbeil and other Cabinet members will also attend, while the premiers of the countries where German automaker factories are located are also invited. Meyer stated that the two-hour summit will focus on finding common solutions to position the auto industry for future technologies, while discussing securing jobs and achieving climate targets.
The summit is expected to serve as a platform to discuss the plan to phase out new gasoline and diesel cars in EU countries starting in 2035. Speaking on Sept. 9 at the opening of Munich's International Motor Show Germany, Merz emphasized that the German auto industry would continue to be a key sector for the country's prosperity but needs a serious overhaul and the right policy framework.
The German government is pushing for the EU to relax carbon emissions reduction targets and reconsider the ban on new gasoline and diesel cars. German automakers face challenges with the high costs of transitioning to electric vehicles (EVs) while being pressured to reduce costs and maintain competitiveness amid weak demand from China and Europe. They are also losing ground to Chinese and American competitors.
The US and China have emerged as major players in the auto industry with recent technological advances, forcing German auto companies to restructure and lay off workers. Recently, Bosch, the world's largest auto parts supplier, announced plans to lay off 13,000 more workers by 2030.
The crisis in the German auto sector is attributed to overlooked trends, structural problems, and geopolitical risks. Once the backbone of Germany's economy, the auto sector accounts for 5% of the total added value, provides 3% of employment, and generates the largest revenue compared to other sectors.
In 2024, German auto exports totaled £262 billion ($307.8 billion), making up 17% of the country's total exports. Approximately 772,900 workers were employed in the German auto industry, excluding suppliers, by the end of 2024, while auto sector employment saw a slight decline of 0.1% compared to 2023. Around 14% of German auto sector employees are industrial workers, making it the second-largest industrial sector after mechanical engineering, which employs 952,000 workers.