Automotive Industry

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IG Metall union workers led by Daniela Cavallo celebrate retaining majority (52 of 67 seats) in VW Wolfsburg works council election, with VW factory backdrop.
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IG Metall retains majority in VW Wolfsburg works council

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In the Volkswagen works council election in Wolfsburg, IG Metall defended its top position despite losses. The list led by Daniela Cavallo received 74.8 percent of the votes, securing 52 of 67 seats. In Braunschweig, an AfD-affiliated organization entered the works council for the first time.

Mercedes-Benz has announced the sale of its dealerships in Berlin and Brandenburg to Global Auto Holdings. The deal covers seven locations and more than 1,100 employees.

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Chile's National Automotive Association (ANAC) reported 11,910 units of zero and low-emission vehicles sold in the first three months of 2026, a 94% increase from last year. This marks a record market share of 15.9%. March sales surged 148% to 5,893 units.

The EU Commission has partially rolled back the planned 2035 combustion engine ban, which a study by the think tank Transport & Environment says could lead to higher CO₂ emissions and declining EV sales. The original 100 percent CO₂ reduction was softened to 90 percent, reducing the share of pure electric vehicles to 85 percent. Experts fear job losses in the German automotive industry.

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In July 2026, Mexico, the United States, and Canada will begin the review of the United States-Mexico-Canada Agreement (USMCA), a pivotal process that could extend the deal for another 16 years or lead to prolonged negotiations. This evaluation occurs amid political tensions, with voices from Washington suggesting the U.S. could thrive without the treaty, and aligns with challenges in Mexico's automotive industry, which is seeing export declines and the influx of Chinese vehicles. Business leaders and experts stress the need for regional integration to sustain competitiveness.

Tesla organized a morale-boosting event at its Gigafactory Berlin on December 2, featuring a performance by rapper Kool Savas to counter union influence ahead of a key works council vote. The gathering included anti-union messaging and a wage increase announcement, but drew criticism for its tone and effectiveness. Employees showed little enthusiasm, highlighting ongoing tensions with IG Metall.

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Following initial reports last week, the EU Commission has detailed its proposal to replace the 2035 total ban on new petrol and diesel cars with a 90% emissions reduction requirement. Hybrids remain viable via offsets like biofuels, prompting support from Christian Democrats but criticism from Social Democrats and Volvo.

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