VDA Statement regarding Franco-German reform agenda

    VDA Statement on the Franco-German reform agenda

    VDA President Hildegard Müller on the Franco-German reform agenda

    Kommentierung

    Kommentierung

    Berlin, August 28, 2025

    VDA President Hildegard Müller:

    "The German automotive industry expressly welcomes the goal of intensifying Franco-German cooperation and advancing joint projects in Europe.

    The joint declaration recognizes that the European automotive industry is one of the continent's key industries—creating growth, prosperity, and jobs in many regions. The joint roadmap to strengthening the automotive industry must therefore urgently address the problem areas repeatedly raised and addressed by the automotive industry: competitiveness and locational attractiveness, particularly with regard to low energy prices, maximum reduction of bureaucracy, lower taxes and levies, a move away from overregulation, and the development of new markets through trade agreements and partnerships.

    With regard to the specific points of reference for the automotive industry, it is right and important that Germany and France are committed to accelerating the review processes and implementing technological openness and flexibility in CO2 fleet regulations. This must now focus on concrete and improved framework conditions for the ramp-up of electromobility, but also on adjusting the 2035 target to –90%, as the German automotive industry recently called for in its 10-point paper. It is also important to be specific regarding technological openness—especially concerning the contribution of PHEVs and renewable fuels.

    We are more critical of the fact that the declaration frequently refers to a preference for European industrial production, which threatens to further undermine the benefits of the global division of labor in times of already strained trade policy. Protectionist instruments can inhibit innovation and lead to the further fragmentation of global value chains. Ultimately, this also leads to higher product prices for consumers and can trigger countermeasures that could negatively impact export-oriented industries such as the automotive industry. The potential use of such instruments must therefore be critically examined for their advantages and disadvantages. Instead, favorable location factors remain central to the goal of achieving the highest possible European value added share.

    Overall, some of the wording in the declaration is very vague and does not reach beyond declarations of intent. This applies, for example, to the carbon footprint of batteries. In line with the joint final document, the EU should now quickly recognize green electricity certificates and PPAs in calculating carbon footprints. The statements regarding charging infrastructure and 'support for the modernization of suppliers' also remain vague. It is important that these intentions are backed up by concrete measures in Germany and France and demanded throughout Europe. For suppliers, this would include, for example, financing conditions, which pose enormous challenges for many businesses.

    The proposed cooperation in promoting research initiatives and building production capacities for battery technology deserves special mention. The general approach of easing the burden on industry in the EU with an industrial electricity price is also correct. However, it is important to ensure that a long-term, accompanying strategic energy policy ensures lower prices. Subsidies can only ever be a temporary solution.

    The planned ramp-up of the hydrogen economy is also welcome. To assume a pioneering role internationally in this area, the appropriate measures must be taken and implemented promptly, especially in the area of infrastructure and with a view to a more pragmatic design of the delegated acts for the production of green hydrogen. The fact that Germany and France want to push ahead with this deserves support.

    The German automotive industry will actively support the further development of cooperation between Germany and France, which also identifies other important topics in the declaration."

    Press & Digital Affairs

    Simon Schütz

    Head of Department