Germany's ruling groups seek EU protection and auto support before 2027 tightening

  • German conservative and Social Democrat parliamentary groups urged stronger European trade protections and auto-industry support.
  • 2027 tightening of plug-in-hybrid emissions calculations would require more electric-vehicle sales under current plans.
  • German industry is pressuring Chancellor Friedrich Merz to adopt a tougher approach toward Beijing.

Germany's ruling conservative and Social Democrat parliamentary groups are calling for stronger European protection against unfair competition and targeted support for automakers. The proposals, aimed primarily at Chinese overcapacity according to parliamentary sources, seek faster and broader EU use of anti-dumping measures (trade remedies against below-market imports) and anti-subsidy actions, although the document reviewed by Reuters does not name China. The groups also want EU-law-compliant local-content criteria added to Germany's electric-vehicle subsidy program, while urging the European Commission to permit plug-in hybrids, range-extender electric vehicles and highly efficient combustion-engine cars alongside battery-electric vehicles after 2035. They further called for Brussels to suspend a planned early-2027 tightening of the utility factor (a calculation of plug-in hybrid emissions), which under current plans would require automakers to sell significantly more electric vehicles to meet fleet CO2 targets. The initiative comes as German industry presses Chancellor Friedrich Merz to take a tougher position toward Beijing, signaling a shift from Germany's longstanding reluctance to impose trade barriers because of potential Chinese retaliation.

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Germany's ruling groups seek EU protection and auto support before 2027 tightening - CoinPost Terminal