German Chancellor Merz: German auto industry will remain key industry for prosperity of our country

German Chancellor Merz: German auto industry will remain key industry for prosperity of our country

German Chancellor Friedrich Merz has underscored the importance of the automotive industry to Germany's economic prosperity and job market, emphasizing that the sector will remain a key driver of the country's future growth. Speaking at the IAA trade fair in Munich, Merz praised the industry's efforts and innovative strength in the transition to electric mobility and autonomous driving.

The German Association of the Automotive Industry (VDA) has been calling for better framework conditions, including less bureaucracy, lower taxes, and cheaper energy prices, to support the industry's recovery. VDA President Hildegard Müller emphasized that the sector needs flexibility and technological options to meet climate protection goals without being hindered by stringent regulations.

Merz acknowledged the challenges faced by the automotive industry, including a slump in profits due to US import tariffs and fierce competition in the Chinese market. However, he expressed confidence that Germany can maintain its position as a leader in the global automotive industry. The Chancellor also stressed the need for a clear commitment to the car sector, stating that Germany cannot function industrially without the automobile.

The automotive industry's crisis has led to job cuts, with more than 50,000 jobs lost in Germany within a year. Both major manufacturers and suppliers are grappling with the transition to electric vehicles and the ongoing trade dispute with the United States. Merz announced that the Christian Democratic Union (CDU) and Social Democratic Party (SPD) will consult with industry stakeholders to find solutions to the crisis.

The Chancellor's remarks come as Europe reassesses its interests in light of changing ties with the United States. Merz emphasized the importance of new partnerships and strengthening existing ones to maintain Europe's standing in the global arena. Despite the challenges, Merz remains optimistic about Germany's automotive industry, highlighting its potential to drive prosperity and growth.

References:
[1] https://www.marketscreener.com/news/auto-industry-wants-better-conditions-a-politicians-must-deliver-ce7d59dfdc8bf726
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_S8N3T5037:0-europe-must-adjust-interests-to-changing-us-ties-says-germany-s-merz/
[3] https://www.marketscreener.com/news/coalition-plans-talks-with-auto-industry-to-tackle-crisis-ce7d59dbda8cf321