Commission suggests various strategies to tackle the issue of joblessness.

The European Union's proposed regulation on CO2 targets for company and rental car fleets has sparked concern among German and Bavarian ministers, who fear it could undermine the stability and growth of the European and German automotive industries.

In a joint letter to Ursula von der Leyen, President of the European Commission, Dr. Nicole Hoffmeister-Kraut, Minister for Economic Affairs, Labor and Tourism of the state of Baden-Württemberg, and Hubert Aiwanger, Minister of Economic Affairs and Deputy Minister-President of the Free State of Bavaria, expressed their concerns about a potential mandatory electrification of company and rental cars by 2030.

The ministers believe that the EU should instead strengthen the innovation power of industry and facilitate investments in climate-friendly technologies, rather than hindering them with bureaucracy. Aiwanger, in particular, emphasized the need to avoid ideological activism and focus on fostering industry innovation.

Aiwanger's stance aligns with Dr. Hoffmeister-Kraut's call for the contribution of plug-in hybrid vehicles to the current CO2 fleet targets for passenger cars to be reviewed immediately. They are concerned that new regulations and bans could put medium-sized businesses and jobs in the supply industry at risk.

The ministers welcomed the additional flexibility granted at EU level for complying with the current CO2 fleet limits and called for the financial scope of companies for investments in innovation and transformation not to be restricted. They emphasized the importance of maintaining a competitive edge in the global market, especially considering the significant number of jobs in the automotive industry that are at stake.

During the Economic Ministers' Conference chaired by Dr. Hoffmeister-Kraut in June 2025, the ministers, including Hubert Aiwanger from Bavaria, expressed their support for the German automotive locations and their jobs. They reiterated the need for innovation and flexibility in EU CO₂ fleet regulations, rather than mandatory electrification of company and rental cars.

Aiwanger supports openness for all technologies in Europe, including synthetic fuels, hydrogen, and efficient hybrid solutions. He believes that this approach is necessary to master the transformation and secure the German automotive location. Instead of dirigistric regulations and double regulation, the EU should rely on innovation on the way to decarbonization.

Dr. Hoffmeister-Kraut has demanded consistent action that takes into account technological openness, especially in view of international competition. She has successfully advocated for the EU to accommodate manufacturers with impending CO2 fleet limit penalties, but new laws and bureaucracy threaten these already struggling companies.

In conclusion, the German and Bavarian ministers are urging the European Union to consider the potential impact of mandatory electrification on the automotive industry and jobs, and to instead focus on fostering innovation and technological openness as a means to achieve its climate goals.