The German Association of the Automotive Industry (VDA) has called for more flexibility in the European Union’s fleet regulation to meet CO2 targets without imposing fines on automakers. During the first strategic dialogue meeting in Brussels, VDA President Müller highlighted the urgent need to improve the framework conditions to help the automotive sector achieve its carbon neutral strategy goals.  

The industry remains committed to the Paris climate goals, and automakers are investing heavily in electromobility, with €320 billion planned for research and development and €220 billion for capital expenditures between 2025 and 2029. However, the sector faces significant challenges, including inadequate infrastructure, sluggish demand for electric vehicles, and tightening regulations that could make achieving targets more difficult. 

To address these challenges, VDA is proposing that the EU bring forward reviews of the passenger car and commercial vehicle regulations to 2025 and establish regular political reviews. Flexibility in the regulations, including the possibility of phased-in fleet targets, is vital to avoid penalties that could restrict investment opportunities and hinder the transition to sustainable technologies. Müller emphasized the importance of adjustments to regulations to foster technological openness, especially considering the challenges posed by the current infrastructure and market conditions. 

VDA is calling for the continued use of plug-in hybrids beyond 2035, the suspension of the planned adjustment to the utility factor in 2025, and greater recognition of renewable fuels’ CO2-reducing potential. These changes are necessary to achieve ESG goals while addressing the regional and technological challenges the automotive sector faces. 

Müller also stressed that meeting the 2030 and 2035 fleet targets will require overcoming significant obstacles in energy infrastructure, such as expanding charging stations and renewable energy sources. The EU must take decisive action to enhance competitiveness by addressing energy price challenges, expanding the electricity grid, and ensuring the availability of necessary raw materials.  

For the automotive industry to successfully transition to a carbon neutral strategy, these measures must be prioritized to align with ambitious decarbonization goals and ensure the sector’s future viability. 

Sources: 

https://www.automotiveworld.com/news-releases/vda-strategic-dialogue-in-brussels-achieving-co2-fleet-targets-requires-flexibilization-and-massive-improvements-in-framework-conditions/ 

https://www.vda.de/en/press/press-releases/2025/250130_PM_CO2-Fleet_targets 

https://cargood.ca/vda-strategic-dialogue-in-brussels-achieving-co2-fleet-targets-requires-flexibilization-and-massive-improvements-in-framework-conditions/