German Auto Industry Gears Up for Global Competition
German Chancellor Friedrich Merz pledged support for the auto sector at the Munich car show, emphasizing the need for innovation against challenges from China, the US, and regulatory hurdles. Merz aims to boost investment and facilitate industry discussions to protect Germany's car sector amidst the global shift to electric vehicles.
German Chancellor Friedrich Merz formally opened the Munich car show on Tuesday, voicing his strong support for the nation's struggling auto industry. He highlighted the necessity of innovation to combat rising threats from China and the United States, while also drawing attention to domestic bureaucratic challenges.
The German auto sector, the country's largest industrial entity, faces numerous pressures including increased U.S. tariffs, weak European demand, the EV transition, and China's escalating price war. Merz announced plans to convene a summit with carmakers, suppliers, and other stakeholders to address these issues in the coming weeks, though specific support measures remain undisclosed.
As Europe's car industry tackles a hefty U.S. import tariff rate of 27.5%, discussions for a lower rate remain stalled. Merz insists on the vitality of Germany's automotive sector for the nation's prosperity, advocating for competition among innovative technologies and an expansion of industrial battery production to meet EV demand.
(With inputs from agencies.)
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