Germany"s car industry crisis: Economy Minister meets with automakers

Economy Minister Robert Habeck is set to meet with major German automakers, including Volkswagen, BMW, and Mercedes-Benz, amid a significant crisis in the car industry. The meeting comes as the industry faces challenges such as strained federal finances, trade disputes with China over tariffs, and new EU environmental regulations. These factors limit the government's ability to provide substantial support to an industry that is crucial to Germany's economy. Habeck has indicated that much of the responsibility for addressing the crisis lies with the companies themselves, particularly Volkswagen, which is reportedly considering job cuts of up to 30,000. The works council at VW has dismissed these predictions as unfounded. Meanwhile, Mercedes-Benz has downgraded its sales outlook, particularly in the vital Chinese market, indicating a broader struggle within the luxury segment. The government has already implemented tax incentives for electric vehicles, but there is little expectation for a significant financial boost to the industry, especially as the federal budget aims to avoid a large deficit. Calls for action from industry leaders include reducing bureaucratic hurdles and investing in infrastructure for electric vehicles and hydrogen. The VDA car lobby has expressed concerns over potential tariffs and new emissions limits, warning that these could impose severe financial burdens on the industry. The situation remains precarious, with industry leaders urging the government to take concrete steps to support the transition to electric vehicles while maintaining profitability.