VDIK welcomes adjustment to CO2 fleet targets but rejects new hurdles

The Association of International Motor Vehicle Manufacturers (VDIK) welcomes the European Commission’s announcement of a realignment of CO₂ fleet regulations. From 2035, a 90 percent reduction in CO₂ emissions will be mandatory for new registrations, instead of 100 percent, for the fleet targets of automobile manufacturers. The agreement paves the way for plug-in hybrids, range extenders, and combustion engines beyond 2035. However, to compensate for the remaining CO₂ emissions, new hurdles have been announced in the form of the use of green steel from the EU and climate-neutral fuels, the feasibility of which is completely unclear. The sale of small electric vehicles manufactured in Europe that are less than meters long enables manufacturers to acquire additional CO₂ credits, thus creating new hurdles for international competition.

VDIK President Imelda Labbé: “International automotive manufacturers remain committed to the vision of zero-emission new vehicles and climate-neutral mobility. However, a realistic and investment-secure regulatory framework is crucial. The shift away from a de facto ban on combustion engines toward a CO₂ reduction target of 90 percent is an important step toward reconciling climate protection and customer-oriented technological openness. However, the compensation options offered by low-emission European steel, e-fuels, and European small cars are contrary to fair competition and leave many questions unanswered regarding their actual feasibility.”

The VDIK views this openness to technology positively, as it puts the actual CO₂ impact at the center of attention—rather than a dogma regarding drive technology. However, this can only succeed if the EU Commission refrains from the planned reduction of the utility factor for plug-in hybrids. A clear position on this is still pending. The VDIK president also emphasized this in a conversation with Federal Environment Minister Schneider.

Due to the lack of infrastructure in Europe and the high charging costs in Germany, the VDIK rejects the planned introduction of flat-rate legal quotas for the electrification of company fleets and thus expressly supports the position of the German government. In the VDIK’s view, the obligation announced by the EU Commission to define national e-quotas is not effective. Positive incentives such as available and affordable charging power and more favorable company car taxation for electric cars and plug-in hybrids are more beneficial to electromobility than mandatory regulations. The VDIK vehemently opposes the planned linking of national fleet subsidies to European production.

The planned change to the CO₂ reduction target from 50% to 40% by 2035 for heavy commercial vehicles acknowledges the inadequate infrastructure and excessive electricity costs and is therefore a step in the right direction.

Protectionist instruments create bureaucracy and jeopardize investments, supply chains, and consumer choice. Europe needs an open, fair, and innovation-friendly market that treats manufacturers equally, regardless of their origin and production structure. For decades, international manufacturers have been an integral part of the German and European market, securing 100,000 jobs at 12,000 affiliated dealerships and distribution centers in Germany alone. International value creation networks are crucial for price stability, innovation, and Europe’s competitiveness.