Proposed solutions by the Commission to address the issue of ongoing unemployment.

In a joint letter to Ursula von der Leyen, President of the European Commission, Dr. Nicole Hoffmeister-Kraut and Hubert Aiwanger, ministers from the states of Baden-Württemberg and Bavaria, respectively, have expressed concerns about the proposed mandatory electrification of company and rental cars by 2030.

Ola Källenius, CEO of Mercedes and President of the ACEA (European Automobile Manufacturers' Association), also voiced his opposition to the proposed regulation in the letter. The ministers and industry leaders argue that the mandate undermines the efforts to stabilize and strengthen the European and German automobile locations, potentially putting thousands of jobs at stake.

The ministers welcomed the additional flexibility granted at EU level for complying with the current CO2 fleet limit regulations. They called for the financial leeway of companies for investments in innovation and transformation not to be restricted. The ministers believe that the EU should rely on innovation on the way to decarbonization, instead of directive-based requirements and double regulation.

Minister Dr. Hoffmeister-Kraut has demanded consistent action that takes into account technological openness, especially with regard to international competition. She has expressed the need for no mandatory electrification of company and rental cars, emphasizing the importance of maintaining a level playing field for all automakers.

The Economic Ministers' Conference in June 2025, chaired by Dr. Hoffmeister-Kraut, expressed support for the automobile location Germany and its jobs. The conference acknowledged the challenges faced by the industry and the need for a balanced approach to decarbonization.

Recently, the EU has accommodated the manufacturers in the imminent threat of penalty payments for missing CO fleet limits. The ministers hope that this precedent will be extended to the discussion on mandatory electrification, allowing for a more flexible and innovative approach to achieving carbon reduction targets.

New laws and more bureaucracy threaten the already struggling companies in the automobile industry, according to Minister Dr. Hoffmeister-Kraut. The ministers and industry leaders are calling for a collaborative effort between the EU and the automobile industry to ensure a sustainable and competitive future for the sector.

The contribution of plug-in hybrid vehicles to the current CO fleet targets for passenger cars must be reviewed immediately, according to Minister Dr. Hoffmeister-Kraut. This review is crucial in ensuring that the industry can continue to innovate and develop new technologies, while still meeting the necessary carbon reduction targets.

The letter from the ministers and industry leaders serves as a reminder of the delicate balance between environmental concerns and economic stability. As the automobile industry navigates the transition to a more sustainable future, it is essential that policies are designed with careful consideration for the impact on jobs and competitiveness.

Proposed solutions by the Commission to address the issue of ongoing unemployment.