Germany's Electromobility Transition at Auto Summit: Calls for Investment Security, Job Guarantees and Regulatory Clarity

Germany's government, industry leaders, and unions recently convened at an auto summit in Chancellor Merz's office to address the pressing challenges posed by the nation's shift to electromobility. The summit highlighted a joint recognition of the necessity to foster a competitive and innovative automotive sector while ensuring job security for workers amidst the transition.

IG Metall Chair Christiane Benner emphasized at the gathering the importance of government responsiveness to employee concerns, particularly about job preservation. She underlined the need for swift implementation of government commitments, including an additional €3 billion funding until 2029 to support climate-friendly mobility initiatives. This includes targeted aid for small and medium-income households to purchase electric vehicles and regulatory adjustments aimed at facilitating emission-free driving without compromising climate neutrality goals. Benner also stressed independence in battery and raw material supply chains and the acceleration of charging infrastructure development alongside affordable electricity access.

Benner further called on companies to uphold responsibility by maintaining domestic production instead of shifting operations to low-wage countries, noting the absence of clear employer commitments on this matter at the summit and promising IG Metall will vigorously pursue action if necessary.

Meanwhile, Green Party member Cem Özdemir highlighted the critical need for investment security for automakers in the electromobility sector. He criticized the earlier abrupt cessation of electric vehicle subsidies under the previous coalition and advocated for a clear yet flexible timeline regarding the EU's 2035 ban on combustion engine vehicles, suggesting the exact year of compliance can have some leeway. The summit also exposed coalition tensions, with the Union party seeking to overturn the EU ban, whereas the SPD remains firm on its enforcement.

These discussions come amid growing pressures on German automakers to adapt swiftly while balancing economic, environmental, and social priorities. The government’s readiness to provide substantial financial support paired with clear regulatory signals aims to underpin industrial competitiveness and secure quality employment during this transformative period.