German carmakers need EU action on China, minister says

German Finance Minister Lars Klingbeil urged the European Union on Thursday to take stronger action against what he called China’s unfair trade practices, saying German carmakers needed protection from tougher competition.

Speaking during a visit to Volkswagen’s headquarters in Wolfsburg, Klingbeil said Germany would press Brussels to take a stronger stance.

“We need a clear signal at a European level,” he said.

Klingbeil said Berlin would push for “concrete measures” from Brussels, which oversees EU trade policy, in areas including plug-in hybrids and local content requirements.

“I am in favour of us standing up to unfair trade practices,” he said.

The EU has levied higher tariffs on Chinese-made electric cars since 2024, alleging that they benefit from unfair state subsidies. Calls have grown for the levies to be extended to hybrid vehicles, which combine electric motors and internal combustion engines.

Daniela Cavallo, a Volkswagen staff representative and member of its supervisory board, also called for Chinese-made hybrids to face higher tariffs.

“We find ourselves in enormously tough, difficult and unfair competition with China,” she said.

Volkswagen recently announced plans to cut a further 50,000 positions globally, taking total projected job cuts to 100,000 in the coming years, or around 15 percent of its workforce. Mercedes-Benz and BMW are also downsizing.

Germany’s IG Metall union has organised nationwide protests for Monday to demand more action to protect the auto industry. The union expects around 100,000 workers to participate across the country.