VDA Statement regarding German Supply Chain Due Diligence Act

    VDA Statement regarding German Supply Chain Due Diligence Act

    VDA President regarding German Supply Chain Due Diligence Act

    Statement

    Statement

    Berlin, September 02, 2025

    VDA President Hildegard Müller:

    "The companies in the German automotive industry demonstrate in their daily actions that respect for human rights and the protection of the environment and climate are central to their concerns. With the Responsible Supply Chain Initiative (RSCI), the VDA, together with companies in the industry, has created an instrument that uses voluntary on-site audits to identify social and environmental risks in global supply chains at an early stage and enable countermeasures.

    The automotive industry is already actively taking its responsibility in global supply chains. However, to ensure that this commitment can continue to be implemented effectively, practically, and as unbureaucratically as possible in the future, the right legal framework is needed. In this context, the abolition of reporting obligations under the German Supply Chain Due Diligence Act (LkSG) is long overdue and appropriate. Companies need legal certainty and less bureaucracy. However, to provide real relief for companies, the LkSG must be completely suspended, including all sanctions.

    To this end, the transition to the future European Supply Chain Directive must be clearly regulated.

    Practical implementation is crucial, especially for small and medium-sized automotive companies: Bureaucracy currently ties up enormous resources that are urgently needed elsewhere. Therefore, it is important that the German government now quickly implements the announced steps, creates legal certainty, and also advocates for further relief at the European level."

    Press Office

    Benedikt Herzog-Wolbeck

    Spokesperson with focus on economic policy & trade