"Berlin will become more distinctly resonant with the voice of Lower Saxony"
In the heart of Germany's automotive industry, Lower Saxony, Olaf Lies, the newly-elected Minister President, faces a daunting task. With colleagues Boris Pistorius and Matthias Miersch by his side, Lies aims to steer the state through turbulent times.
As the home to major car manufacturers like Volkswagen, Lower Saxony is grappling with significant challenges due to the ongoing crisis in the German automotive industry. Trade tariffs, slumping sales in key markets, rising production costs, and potential job losses are just a few of the hurdles Lies must navigate.
One of the most pressing issues is the impact of U.S. tariffs, which have increased costs and cut profits for German automakers like Mercedes and Volkswagen. Mercedes reported a 56% drop in net profit in early 2025 largely due to tariffs and a 20% sales slump in China, its biggest market. Volkswagen, too, struggles with stagnating sales and billions lost to tariffs.
The rise of cheaper domestic electric vehicles in markets like China also poses a threat to German manufacturers' competitiveness, requiring costly adaptations to new technologies and market demands.
To aid recovery, political solutions are essential. Lies plans to reduce regulatory and bureaucratic barriers, revisit energy policies to stabilize and reduce energy costs, continue negotiations to ease tariff burdens, and support innovation and high-margin products. Job protection and industrial support programs are also crucial to mitigate potential job losses.
Lies aims to build the image of the father of the state by listening to the people, understanding their needs, and working tirelessly to address issues. He is against causing chaos with impulsive actions, favoring renewal and new themes with a steady hand.
Lower Saxony's geographical location makes it a key player in defense capabilities and the energy transition. Lars Klingbeil, appointed as the new State Secretary and Federal Representative, will strengthen Lower Saxony's federal representation in Berlin, ensuring the state benefits from billion-euro packages planned by the federal government.
Climate change is forcing the economy to transform, and businesses must enhance their competitiveness. The future is electric, and efforts are being made at the federal, state, and EU levels to set the right framework for electric vehicles.
However, political extremes could further divide society, and democratic parties have a significant task in engaging in tough discussions while finding solutions for the good of the country. Lies aims to foster a sense of unity and shared purpose among the people of Lower Saxony.
Global geopolitical tensions, such as the Ukraine conflict and trade disputes initiated by the Trump administration, are challenges for Lower Saxony. Lies will work closely with partners in the federal government and the EU to secure the best possible deals for Lower Saxony.
Energy prices must decrease, and purchase incentives are needed for electric vehicles. Lower Saxony needs a strong representation of its state's interests in Berlin, with the upcoming billion-euro investments in infrastructure and healthcare reform.
In his new role, Lars Klingbeil has made a successful start, taking on responsibility in a challenging situation. Politics can help German carmakers recover from the crisis by providing clear, good, and fair framework conditions without unnecessary bureaucracy.
[1] The New York Times [2] The Guardian [3] Bloomberg [4] Reuters
In the realm of policy-and-legislation, Lower Saxony's Minister President, Olaf Lies, aims to navigate through the challenges faced by the German automotive industry, such as trade tariffs and the rise of cheaper domestic electric vehicles, by reducing regulatory barriers, revisiting energy policies, easing tariff burdens, and supporting innovation in high-margin products. [1]
The shifting dynamics of politics, globally and domestically, have significant implications for Lower Saxony, particularly in the areas of general-news like geopolitical tensions, climate change, and democratic discourse. [2] [3] [4] To ensure the best possible deals for Lower Saxony and foster unity among its people, Lies is working closely with partners in the federal government and the EU.
