Germany calls for stronger EU protections for auto industry

Germany’s governing coalition, comprising the Christian Democratic Union (CDU) and the Social Democratic Party (SPD), is calling for stronger European Union protections against unfair competition to safeguard the domestic automotive industry. A document reviewed by Reuters indicates the parties seek a “robust” response to market-distorting practices, specifically targeting production overcapacity, though China is not explicitly named in the text.

The proposal advocates for the faster and more extensive use of EU anti-dumping and anti-subsidy measures. Additionally, the coalition suggests introducing local content criteria for German electric vehicle (EV) subsidy programs to ensure taxpayer funds do not inadvertently support Chinese imports.

To support the automotive sector, the parties are urging the European Commission to allow plug-in hybrids, range-extender EVs, and highly efficient internal combustion engine vehicles to remain viable options beyond 2035. They also request that Brussels suspend a planned 2027 tightening of emission calculation rules for plug-in hybrids, which would currently force manufacturers to sell significantly more battery-only electric vehicles to meet CO2 fleet targets.