Europe is at a crossroads: While European regulation is tightening the CO2 limits for new cars next year as planned, the German car industry is struggling to remain competitive. Cheap electric vehicles from China are putting pressure on the market, while ambitious emissions targets are set to accelerate the transformation of the industry – with uncertain consequences for jobs and innovation. In this situation, Volkswagen and Mercedes – unlike BWM or Opel – are pushing to soften the upcoming CO2 limits.