BERLIN 

Germany will host an auto summit on Oct. 9 to discuss ways to boost the competitiveness of the German auto market amid rising competition from the US and China, according to a statement.

The summit will be attended by German Chancellor Friedrich Merz and auto industry representatives, manufacturers, suppliers, and union representatives in Berlin, said Steffen Meyer, first deputy spokesperson, in a recent statement.

Vice-Chancellor and Finance Minister Lars Klingbeil and other Cabinet members will also attend, while the premiers of the countries where German automaker factories are located are also invited.

Meyer said the two-hour summit will focus on finding common solutions to position the auto industry for future technologies, while discussing securing jobs and achieving climate targets.

The summit is expected to be a platform to discuss the plan to phase out new gasoline and diesel cars in EU countries starting in 2035.

Speaking on Sept. 9. at the opening of Munich’s International Motor Show Germany, Merz said the German auto industry would continue to be a key sector for the country’s prosperity but it needs a serious overhaul and the right policy framework,.

The German government wants the EU to relax carbon emissions reduction targets and reconsider banning new gasoline and diesel cars to be sold.

German automakers are struggling with high costs of shifting to electric vehicles (EVs), while being pressured to reduce costs and maintain competitiveness amid weak demand from China and Europe, all the while losing ground to Chinese and American competitors.

The US and China became major players in the auto industry with the emergence of recent technologies, while German auto companies have had to restructure and lay off workers. Most recently, Bosch, the world’s largest auto parts supplier, announced plans to lay off 13,000 more workers by 2030.

The crisis in the German auto sector was led by a combination of overlooked trends, structural problems, and geopolitical risks, while the sector was once the backbone of the country’s economy.

The auto sector accounts for 5% of the total added value in Germany, while providing 3% of the employment and generating the largest revenue compared to other sectors.

German auto exports totaled €262 billion ($307.8 billion) in 2024, making up 17% of the country’s total exports.

Around 772,900 workers were employed in the German auto industry, except for suppliers, as of the end of 2024, while auto sector employment fell 0.1% versus 2023.

Around 14% of German auto sector employees are industrial workers, making the second-largest industrial sector, following mechanical engineering, which employs 952,000 workers.