Statement

    Automotive Package: VDA President Hildegard Müller regarding Platform Compromise

    Berlin, October 21, 2026

    VDA President Hildegard Müller: 

    "While the compromise reached by the EPP, S&D, and Renew groups contains clear improvements over the European Commission’s proposal, it does not go far enough to ensure the competitiveness of Europe as a manufacturing base—and thus for the prospects for growth and employment in Europe. Consequently, as the legislative process continues, this compromise must be urgently refined in key areas.

    A particularly positive aspect is the recognition of vehicles powered by renewable fuels as zero-gram vehicles (VEEF). Nevertheless, further improvements are needed to ensure that the Automotive Package is sufficiently flexible and open to various technologies. Industrial competitiveness, employment, and climate protection must be considered together.

    In particular, the 2035 target for CO₂ fleet regulation should be adjusted to 90%, rather than the 95% proposed in the compromise. Furthermore, the 'green steel' mechanism suggested in this context is insufficient; it should not be limited to steel alone, but rather designed to be material-neutral and voluntary. The emissions savings achieved through such measures should count toward the 90% CO₂ reduction target as an additional contribution. The same applies to the inclusion of renewable fuels, which should also be credited toward the 90% CO₂ reduction target (via a carbon crediting mechanism).

    The proposal to recognize vehicles fueled exclusively by renewable fuels as 'zero-gram' vehicles (VEEF) represents an important step toward greater technological openness. However, the underlying definition of such fuels should not be unnecessarily narrowed from 2033 onwards, as the platform suggests. Instead, first-generation renewable fuels—provided they meet the criteria set out in the Renewable Energy Directive (RED)—should continue to be permitted for use beyond 2032.

    It is long overdue to suspend the tightening of the utility factor for plug-in hybrids. However, the additional conditions proposed for this suspension are incomprehensible. Furthermore, a suspension of only three years is clearly insufficient and fails to account for the long-term significance of this technology—particularly for the German and European automotive supply industry and its workforce. This technology will continue to be of great importance on a global scale.

    The mechanism of multi-year emissions averaging does not result in any additional CO₂ being emitted, while simultaneously providing manufacturers with important flexibility. In this respect, the compromise offers improvements over the Commission’s proposal, yet it still falls short of what is necessary. The period for averaging passenger car emissions should begin as early as 2028, span five years, and operate without the currently proposed cap.

    The compromise proposal also offers improvements over the European Commission’s proposal regarding 'supercredits,' as it takes vehicle efficiency into account and moves beyond a narrow focus on a length-based criterion. However, both criteria should be treated equally when calculating these credits. Furthermore, supercredits should also be made available for all battery-electric vehicles produced within the EU—regardless of their length or efficiency.

    We view the compromise positively, particularly with regard to light commercial vehicles. The adjustments to the targets for 2030 and 2035, the introduction of averaging for the 2025–2029 and 2030–2034 periods, and the inclusion of supercredits for battery-electric vans represent sensible measures—though some details still require further clarification.

    Furthermore, it remains the case that also for heavy commercial vehicles the regulation of fleets must now be addressed promptly."

    Contact:

    Press Office

    Eva Siegfried

    Team Lead Press Office & Spokesperson with focus on economics