The Association of International Motor Vehicle Manufacturers (VDIK) expressly welcomes the letter from the German Chancellor to the President of the European Commission. The review of European CO₂ fleet regulations announced in the letter is a necessary and appropriate step toward making the transformation of the automotive industry realistic, technology-neutral, and economically viable. In the letter, the German government emphasizes the need for greater flexibility and technology neutrality in regulation in order to effectively combine climate protection, industrial value creation, and innovation.
No electric quotas and no reduction in the utility factor
Chancellor Merz’s demand to take the electric range of modern plug-in hybrids (PHEVs) into account appropriately is crucial for the entire automotive industry. The VDIK is calling for the planned reduction in the utility factor to be prevented in order to provide clarity for manufacturers and consumers about the regulatory path from 2028 onwards.
VDIK President Imelda Labbé: “Reducing the utility factor would be a serious mistake. It would ignore the reality of how modern plug-in hybrids are used and directly contradict the planned subsidy program. Modern PHEVs are increasingly being used electrically in everyday life due to their greatly increased range. They thus make a demonstrable contribution to climate protection and consumption efficiency. We need regulation that recognizes progress, offers planning security, and does not artificially create new contradictions.”
Due to the lack of infrastructure in Europe and the high charging costs in Germany, the VDIK rejects the introduction of flat-rate legal quotas for the electrification of company fleets and thus expressly supports the position of the German government.
Fair competition for all market participants
The VDIK is skeptical about the Chancellor’s reference to a possible risk of unfair trade practices and distorted competitive conditions. 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 dealer bases and distribution centers. International value-added networks are crucial for price stability, innovation, and Europe’s competitiveness.
Planning security is crucial for the automotive industry.
VDIK member companies are investing heavily in sustainable mobility for BEVs and PHEVs. To ensure a minimum level of planning security, a clearly quantified CO₂ pathway agreed between the German government and the EU Commission is therefore needed from 2028 onwards, which takes into account the real-world use of modern PHEVs.
Combining climate protection and industrial competitiveness
In his letter, the German Chancellor calls for EU regulation that reconciles climate protection and industrial competitiveness. The VDIK shares this goal and therefore appeals to the EU Commission:
• Implement review of fleet limits by 2025
• Prevent reduction of utility factor at all costs and recognize real benefits
• No legal quotas for the electrification of company fleets
• Consistently strengthen openness to technology
• Ensure equal opportunities for all manufacturers
• Guarantee investment security for all manufacturers and their dealers
