Chancellor Friedrich Merz will Thursday host crisis talks with German auto industry leaders in a bid to navigate myriad challenges, from a looming EU combustion-engine ban to growing Chinese competition.

Led by titans Volkswagen, BMW and Mercedes-Benz, the German auto sector has long been one of the flagship industries in Europe’s biggest economy but now finds itself in the throes of a painful downturn.

From falling sales and profits to waves of layoffs, the sector has generated a steady stream of bad news for months.

Automakers and suppliers are struggling with a slower than expected electric shift, fierce competition from Chinese EV makers and US President Donald Trump’s tariffs blitz.

Thursday’s talks aim to chart a course forward for the industry, government spokesman Steffen Meyer

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