"The coalition in Berlin has agreed on a common position regarding the revision of CO2 fleet regulations for vehicles. This is good news for the automotive industry and its hundreds of thousands of employees. Now Germany must immediately advocate for the necessary flexibilities with a strong and unified voice and corresponding force at the European level and with other EU member states.

German car manufacturers and their suppliers have invested billions in ramping up e-mobility. It is the main pathway to climate neutrality. This year, more than 40 percent of passenger cars produced in Germany will be electric. However, demand has so far fallen short of expectations and political targets, simply because the framework conditions are not keeping pace.

Against this backdrop, including plug-in hybrids, cars with range extenders, and highly efficient combustion engines in fleet regulations beyond 2035 is a correct and necessary step and an integral component for a successful ramp-up towards climate-neutral mobility, which simultaneously secures jobs and fosters consumer acceptance. An innovation-friendly and technology-neutral approach helps to reconcile climate protection, competitiveness, and jobs. This also includes a more important role for renewable fuels.

Furthermore, protectionism is the wrong path for Germany's export-oriented and internationally positioned automotive industry. Such measures do not solve the problem of lacking competitiveness of our country as an industrial location. Instead, Europe must quickly do its homework and ensure internationally competitive conditions as an industrial location. This includes strengthening the resilience of the raw material supply chain, establishing a viable European battery ecosystem, and concluding further trade agreements. Everything that creates growth must be addressed now.

In addition, the framework for climate-neutral mobility must now be urgently established—enormous improvements are needed here. This includes a more ambitious expansion of the charging and hydrogen refueling infrastructure across Europe, lower charging prices, and effective incentives for renewable fuels.

It is crucial to understand that there is still a pressing need for action regarding commercial vehicles. The coalition must take further steps. Additional measures are needed, particularly for trucks and buses, to ensure a successful ramp-up. For example, the expansion of charging and hydrogen refueling infrastructure is still in its early stages and represents the main obstacle to purchasing these vehicles. Against this backdrop, the CO2 targets cannot be met. Therefore, the revision of the CO2 regulations for heavy commercial vehicles must be expedited.

The e-mobility subsidy program for lower and middle incomes, now announced by the black-red coalition, already contains some fundamentally positive elements. However, some points still require clarification—especially to guarantee adequate safety for consumers.

It is right to grant the subsidy regardless of list prices. However, the announced link to local content requirements is not effective. Further details should incorporate the experiences of the automotive industry and consider potential reactions from other countries.

It is welcome that leased vehicles are also to be included in the funding opportunities. Setting a minimum holding period for both purchases and leases is fundamentally a step in the right direction to prevent potential misuse. Furthermore, consumers should be provided with greater clarity as quickly as possible. This also applies to the actual validity period of the funding. And: The decisive factor for receiving any potential funding must be the conclusion of the contract—not the registration date of the e-car, as with previous funding programs. The administrative burden should also be kept to a minimum and be easy to manage for all parties involved.

Overall, the compromise achieved by the CDU/CSU and SPD is not only an important signal to the automotive industry and its employees, but also a clear mandate for action for European partners and the European Commission. With the proposals announced for December, the EU Commission must now demonstrate that it can not only set ambitious goals, but also take realities into account and ensure the right framework for climate protection in the transport sector, while simultaneously safeguarding growth, prosperity, and jobs."