The president of the German Association of the Automotive Industry (VDA), Hildegard Müller, has expressed concern over potential job losses within the automotive sector in Germany, just days before the opening of the IAA Mobility show in Munich Müller warned that the closure of supplier locations, particularly in regional areas, could destabilize the country, leading to both economic and social consequences
Müller stated her surprise at the recent attention surrounding the reported loss of 50,000 jobs within the German automotive industry over the past year, emphasizing that the industry has consistently highlighted the anticipated decline in value creation and employment associated with the transition to electric vehicle production
She further pointed to unfavorable conditions within Germany as contributing factors, leading major German car manufacturers to increasingly direct substantial investments abroad Müller cautioned that once new factories are established overseas, associated jobs are unlikely to return
The VDA president is calling for fundamental reforms to improve Germany’s economic standing, as well as a relaxation of regulations from the European Commission regarding the planned phase-out of internal combustion engines by 2035 Specifically, she proposes that the stringent CO2 fleet emission reduction rules apply only to 90 percent of production
Müller argued that focusing solely on the combustion engine ban is counterproductive, triggering negative reactions from consumers She suggests that Brussels should prioritize practical steps to achieve climate goals, such as expanding charging infrastructure, upgrading power grids and securing reliable raw material supplies
The emphasis, she contends, should be on creating the best possible conditions for successful transformation, rather than simply setting the most ambitious targets Müller also highlighted the industry’s significant contribution to the transition towards climate-neutral transportation She stated that Germany is currently the world’s second-largest producer of electric vehicles, with production of all-electric and plug-in hybrid cars projected to reach 17 million units in 2025
The impending restrictions on combustion engines are part of the EU’s “Fit for 55” package, designed to shift the EU’s trajectory from potentially exceeding a 4-degree Celsius warming scenario toward limiting global warming to slightly over 2 degrees Celsius Recently, the International Court of Justice affirmed the internationally binding nature of the 15-degree Celsius limit and that states could face legal challenges for exceeding it