By AFP
October 9, 2025
Chancellor Friedrich Merz is hoping to rev up the struggling German auto industry - Copyright AFP HAZEM BADER
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 told a recent press conference, adding the sector was “hugely important” for Germany.
“This applies not only to the major brands and manufacturers, but also to the suppliers, which are really crucial for prosperity and jobs in many regions,” he said.
At the two-hour meeting at the chancellery in Berlin, Merz will be joined by top auto industry figures, several government ministers and union representatives.
Merz, Finance Minister Lars Klingbeil and the heads of auto industry group VDA and the IG Metall union are expected to deliver a statement after the talks at 1300 GMT.
– Engine row rumbles on –
High on the agenda will be the European Union’s plan to end sales of new combustion-engine vehicles by 2035 as part of efforts to reduce greenhouse gas emissions.
German carmakers have voiced opposition to the ban, fearing it could hit their businesses as the EV shift moves slower than expected, and the EU pledged last month to fast-track a review of the policy.
Merz, of the centre-right CDU party, has since stepped up calls for the plans to be scrapped entirely, labelling them “wrong” this week.
But his stance has fuelled tensions with his junior coalition partners, the centre-left SPD, some of whose senior members insist the deadline should be maintained.
Ultimately the coalition may agree on a compromise to propose to Brussels, aiming to soften the ban but not do away with it entirely, according to German media reports.
Also on the table may be a proposal by Klingbeil to extend a tax break on EVs, which is due to expire at the start of 2026, by five years to help speed up the electric transition.
The Handelsblatt financial daily reported that the government was also examining the idea of allowing car manufacturers who use “green” steel made in Europe to face less stringent CO2 reduction targets.
But it is a complicated topic, and would need agreement from Brussels, it said.
Auto industry experts were sceptical that any major announcements would emerge from the meeting that could help the beleaguered sector.
Frank Schwope, an auto industry expert from the FHM university in Cologne, told AFP there could be some small announcements, such as investments in battery research.
But he added those attending “will discuss a lot and decide little, in part because decisions are made at the European level”.
Ferrari goes electric with four-seat coupe ‘Elettrica’
By AFP
October 9, 2025
Ferrari image: — © AFP/File Bertha WANG
Ferrari’s first electric sports car, to be released next year, will be a four-seat coupe with over 1,000 horsepower and a range of 530 kilometres (329 miles), the company announced Thursday.
Named “Elettrica”, the new Ferrari is primarily targeted at wealthy customers “who want to drive only electric cars and want to live the Ferrari experience,” Ferrari CEO Benedetto Vigna said during a presentation to investors and the media at the company’s factory in Maranello.
But Ferrari has no intention of going all-electric with its portfolio anytime soon.
“It’s an addition (to the lineup), not a transition,” Vigna said.
The company did not disclose a selling price for the car, but analysts say Ferrari will need to carefully position it in relation to the nearly 500,000 euros ($580,500) base price of its Purosangue SUV.
Ferrari already sells nearly half of its cars in hybrid versions, but until now has not made the shift to electric, coming several years after Porsche, Lamborghini, Lotus, and the very fast Rimac.
Ferrari’s management unveiled the car’s architecture on Wednesday evening, with a very low driving position in a recycled aluminium chassis with a large motor on each of the four wheels.
As expected from Ferrari, the Elettrica promises to be fast, going from zero to 100 kilometres per hour in 2.5 seconds with a maximum speed of 310 km/h, but the choice of a four-seater model puts it behind some of its competitors.
The classic Ferrari shift paddles on the steering wheel will be used on the Elettrica to opt between a smooth or sporty driving style, modulating the power of the motors and the suspension control.
In an homage to large gasoline engines, the Elettrica offers a simulated downshift, while the purr of the traditional engines will be replaced with an amplified sound from the electric motor.
That will “give information” to the driver about the feel of the road, explained Gianmaria Fulgenzi, product director at Ferrari.
“It’s like choosing between a sailboat and a motorboat: both are exciting but in different ways,” he said.
The brand has taken on the costly development of most of the technical innovations internally, particularly the integrated battery pack, “because keeping that expert knowledge in-house means we can stay competitive”, he said.
The final model is due to be unveiled in early 2026.
On Thursday morning, Ferrari is set to give hundreds of investors and financial analysts invited to Maranello details of its strategy for the coming years.
The aim is to protect its significant profit margins (which in the first half of 2025 were 23.4 percent) in the rapidly changing automotive and luxury sectors.
By AFP
October 9, 2025
Ferrari image: — © AFP/File Bertha WANG
Ferrari’s first electric sports car, to be released next year, will be a four-seat coupe with over 1,000 horsepower and a range of 530 kilometres (329 miles), the company announced Thursday.
Named “Elettrica”, the new Ferrari is primarily targeted at wealthy customers “who want to drive only electric cars and want to live the Ferrari experience,” Ferrari CEO Benedetto Vigna said during a presentation to investors and the media at the company’s factory in Maranello.
But Ferrari has no intention of going all-electric with its portfolio anytime soon.
“It’s an addition (to the lineup), not a transition,” Vigna said.
The company did not disclose a selling price for the car, but analysts say Ferrari will need to carefully position it in relation to the nearly 500,000 euros ($580,500) base price of its Purosangue SUV.
Ferrari already sells nearly half of its cars in hybrid versions, but until now has not made the shift to electric, coming several years after Porsche, Lamborghini, Lotus, and the very fast Rimac.
Ferrari’s management unveiled the car’s architecture on Wednesday evening, with a very low driving position in a recycled aluminium chassis with a large motor on each of the four wheels.
As expected from Ferrari, the Elettrica promises to be fast, going from zero to 100 kilometres per hour in 2.5 seconds with a maximum speed of 310 km/h, but the choice of a four-seater model puts it behind some of its competitors.
The classic Ferrari shift paddles on the steering wheel will be used on the Elettrica to opt between a smooth or sporty driving style, modulating the power of the motors and the suspension control.
In an homage to large gasoline engines, the Elettrica offers a simulated downshift, while the purr of the traditional engines will be replaced with an amplified sound from the electric motor.
That will “give information” to the driver about the feel of the road, explained Gianmaria Fulgenzi, product director at Ferrari.
“It’s like choosing between a sailboat and a motorboat: both are exciting but in different ways,” he said.
The brand has taken on the costly development of most of the technical innovations internally, particularly the integrated battery pack, “because keeping that expert knowledge in-house means we can stay competitive”, he said.
The final model is due to be unveiled in early 2026.
On Thursday morning, Ferrari is set to give hundreds of investors and financial analysts invited to Maranello details of its strategy for the coming years.
The aim is to protect its significant profit margins (which in the first half of 2025 were 23.4 percent) in the rapidly changing automotive and luxury sectors.
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