Merz to host talks with Germany’s auto sector

CHANCELLOR Friedrich Merz was yesterday expected to host crisis talks with German auto industry leaders in a bid to navigate myriad challenges, from a looming EU combustion-engine ban to growing Chinese competition.

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Led by titans Volkswagen, BMW and Mercedes-Benz, the German auto sector has long been one of the flagship industries in Europe's biggest economy but now finds itself in the throes of a painful downturn.

From falling sales and profits to waves of layoffs, the sector has generated a steady stream of bad news for months.

Automakers and suppliers are struggling with a slower than expected electric shift, fierce competition from Chinese EV makers and US President Donald Trump’ tariffs blitz.

“We agree that the coalition wants to do everything possible to ensure a bright future for the German automotive industry,’ Merz told a press conference yesterday ahead of the talks at the chancellery in Berlin.

He said the government would provide €3 billion (about R60bn) in incentives for EV purchases, which would be aimed at lowand middle-income households, without giving further details.