VDA chief warns automakers face multibillion-euro fines

VDA chief warns automakers face multibillion-euro fines

Hildegard Müller, president of Germany’s automotive industry association VDA, warned that tighter CO₂ emissions rules could lead to multibillion-euro fines for passenger car and commercial vehicle manufacturers. She supports a Franco-German proposal to cut vehicle emissions by 90% without mandatory offsetting measures.

Müller says her position is based on the fact that automakers cannot guarantee supplies of the required volumes of low-carbon materials, particularly “green” steel. In her view, companies should not face fines for factors beyond their control.

The VDA chief called for action before November 27 to prevent stricter rules for calculating the utility factor of plug-in hybrids from taking effect. She noted that different types of powertrains support around 50,000 jobs in Germany.

According to Müller, the automotive industry plans to invest around €550 billion over five years in new powertrains, digitalization and production restructuring. The sector needs realistic regulatory conditions to do so, she stressed, adding that this was not a call to abandon climate targets.

On trade policy, Müller favors the “Made with Europe” approach over the “Made in Europe” slogan: German industry depends on exports. She also urged Europe to tackle high electricity costs for businesses, bureaucracy and taxes. In her view, fair competition and reciprocity—not protectionism—are what is needed.

The VDA is monitoring the semiconductor shortage but remains cautious about claims of a new chip crisis. The association considers resilient supply chains and the development of Europe’s technological capabilities important.

Müller also reported significant early interest in IAA Mobility 2027, including in the Open Spaces venues in central Munich. The VDA is Germany’s automotive industry association, representing the interests of companies in the sector.

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