Germany's automotive industry is facing significant challenges as both Volkswagen (VW) and Mercedes-Benz navigate turbulent times.

During a visit to VW's Emden plant, Economy Minister Robert Habeck emphasized that while political support is available, VW must address most of its issues independently.

The company is grappling with high costs and potential job losses, prompting Habeck to call for an "auto summit" to discuss the industry's future.

Meanwhile, Mercedes-Benz has lowered its profit forecast for 2024, citing a weakened economic environment, particularly in China, which has affected luxury car sales.

The situation has sparked debates over CO₂ emission standards, with calls to delay new regulations set for 2025. As the industry seeks stability, Habeck has proposed new incentives for electric vehicles to boost market demand.