Berlin - Germany is to inject government funding into engine-design work in the car industry, Chancellor Angela Merkel said in a newspaper interview published Sunday.
She spoke as the industry, a key German exporter, scales back production amid plunging worldwide sales.
"Germany invented the first cars a century ago. Now we are in a fresh competition to see if German industry can build the 21st century car," Merkel, who has a doctorate in physics, told the Bild am Sonntag newspaper.
She said German carmakers had to try harder to innovate.