German Chancellor Friedrich Merz (CDU) pledged government support for the automotive sector in creating the right conditions for greater competitiveness. “The federal government stands by the automotive industry,” Merz said on Tuesday during his opening speech at the IAA Auto Show in Munich. The Chancellor also reaffirmed his commitment to climate protection and the goal of a “climate-neutral automotive industry as much as possible.” However, he emphasized that the transition to electric mobility must involve “more flexibility” and fewer bans.
Merz did not directly address the ongoing debate over the de facto ban on new combustion engine vehicles in the EU from 2035, but he stressed the “principle of technological openness” to achieve climate goals “as cost-efficiently as possible.” He also confirmed that he would “invite industry representatives to a political dialogue on the future of the automotive sector.” According to Merz, Germany should “once again become an economic hub admired by the world.”
The Chancellor highlighted that the auto industry faces significant challenges and “must undergo profound change and adaptation.” To facilitate this, the government intends to “set the right political framework,” he assured. He referenced already approved measures such as the investment booster for the industry, the planned corporate tax reduction, and tax incentives for the acquisition of company electric vehicles.
“Owning a car is and remains a piece of freedom,” Merz continued, noting this applies not only in rural areas but also in urban settings. He added that “the automotive industry is the key sector for our country’s prosperity.” Merz also advocated for innovative battery production in Germany and emphasized that autonomous vehicles should eventually operate on German roads in daily use. This, he said, requires a proper assessment of risks rather than a “zero-risk strategy.”
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