The German government is hosting crisis talks to support the country's beleaguered auto industry, with Volkswagen reportedly calling for subsidies to boost slumping electric car demand.
Germany's flagship auto industry is battling challenges on several fronts, from high manufacturing costs to a troubled transition to electric cars and weakening demand in key market China.
Among the hardest hit has been Volkswagen, Europe's biggest carmaker, which announced earlier this month that it urgently needed to cut costs, and was considering the closure of German plants for the first time in its 87-year history.
Ahead of the talks, which were reportedly due to start on Monday afternoon, Volkswagen CEO Oliver Blume said it was a chance to push through rapid help for the industry.
"We have major challenges... Perhaps the biggest in the country at the moment," he told news channel NTV.
German Economy Minister Robert Habeck is hosting the talks online, with participants including top carmakers, the VDA auto industry association, major suppliers and trade unions.
Among suggestions put forward include reintroducing subsidies for electric vehicles, which were phased out last year, leading to large falls in EV sales.
The Spiegel news outlet reported that VW was calling for a government subsidy of 4,000 euros ($4,450) for the purchase of a pure electric car if the manufacturer also offered a discount of 2,000 euros.
Blume said that "entire package" was needed, from subsidies to tax breaks and the price of charging for electric vehicles.
"It is important to exchange ideas, to examine which levers can be used in the short, medium and long term and then to make bold decisions."
Another pressing matter was "CO2 regulations in Europe," Ola Kallenius, CEO of luxury carmaker Mercedes-Benz, told the Handelsblatt financial daily.
Last week European carmakers appealed to the EU for "urgent" assistance to cope with stricter emissions regulations coming into effect in 2025 at a time of slumping electric vehicle sales.
Concrete measures are unlikely to be announced directly after the talks, with decisions likely to be made later by Chancellor Olaf Scholz's whole government.
As well as VW, Germany's other leading manufacturers face major problems.
In recent weeks, both Mercedes and BMW lowered their outlooks for the year in part due to weak sales in China.
After investing heavily in the world's number two economy in recent decades, German manufacturers have seen their market share shrink due to fierce competition from Chinese rivals, who have shifted more quickly to electric vehicles.
Higher costs in Germany, in particular due to rising energy prices, have added to their problems.