German Chancellor Friedrich Merz said that the German government is doing everything it can to stabilize the country's automotive sector.
“I spoke to the chairman of the works council and the company management. I told them that we are doing everything we can to restore stability in the automotive industry. It is currently the most difficult industry in Germany. However, this is also due to the huge subsidies for imports from China“, Merz said in a “summer interview“ for ZDF television, answering a question about plans by automotive component supplier Martinrea Honsel to cut hundreds of jobs.
The German chancellor explained that he “discussed this issue with the French government literally yesterday and the day before“. “We are in the process of developing a strategy to restore the competitiveness of the German and European automotive industry. We are currently going through difficult processes, but I am maintaining a dialogue with those directly affected“, concluded Merz.
The German automotive industry has been in crisis in recent years, initially triggered by the coronavirus pandemic, but intensified since 2022 by rising energy prices and increased competition from Chinese automakers.