Automotive Industry Competitiveness Blueprint Proposed by VDA, Outlining Ten Key Strategies
The German Association of the Automotive Industry (VDA) has criticised politics for neglecting its task in CO2 fleet regulations for passenger cars, vans, and heavy commercial vehicles. The association has particularly highlighted the need for improvements in charging infrastructure and network expansion.
While specific details about the VDA's ten-point plan with key demands to the EU Commission and national governments are not readily available, it is likely that the plan includes a focus on several key elements. These may include:
- Expansion and acceleration of high-performance charging infrastructure, especially for long-distance and heavy-duty vehicles.
- Clear and ambitious CO2 emissions reduction targets aligned with industry capabilities, aiming for CO2-neutral transport on roads by 2050.
- Support for the production and market introduction of electric and hydrogen fuel cell commercial vehicles.
- Funding and regulatory frameworks that support battery and fuel cell technology development and industrial competitiveness.
- Harmonized regulations across the EU to ensure market stability and facilitate investment.
- Incentives to boost electric vehicle adoption, including electric buses and trucks for public and freight transport.
- Spatial and urban planning measures to integrate electromobility infrastructure efficiently.
- Support for R&D and innovation in next-generation electric drivetrains and automated driving technologies.
- A relief in the form of a two-year phase-in of the limits for the tightening of targets in 2030 and 2035.
- Greater focus on renewable fuels, but with the challenge of making non-fossil fuels price-competitive and scalable on a large scale.
The VDA has also raised concerns about tightening AFIR requirements, high charging prices, and the need for a reduction in these prices through more competition, technology, tax reduction, and levy reduction. The association has emphasised the importance of strengthening technological openness in electromobility and the need for a quick improvement in framework conditions for consumers to switch to climate-neutral drives as soon as possible.
The VDA has also called on politics in Brussels and Berlin to establish necessary framework conditions for long-term and sustainable success in electromobility. The association's President, Hildegard Müller, has demanded that Brussels react to the changed global situation, strategically linking the achievement of climate goals to the preservation of competitiveness. The VDA has insisted on the need for an increase in the AFIR ambition level, combined with accelerated network expansion.
The German automotive industry, represented by the VDA, is committed to the Paris climate goals and has made significant investments in converting production, new capacities, and employee qualification towards electromobility. However, the industry faces weak demand in Europe, significant geopolitical changes, a reform-needed location, and a challenging competitive environment, which the VDA has highlighted as challenges that need to be addressed.
[1] HoLa project: https://www.holacharging.com/ [2] Incentives for electric vehicles: https://www.transportenvironment.org/sites/default/files/2019-12/Transport%20and%20Environment%20-%20EU%20electric%20vehicle%20incentives%20database%202019.pdf [3] R&D and innovation in electromobility: https://ec.europa.eu/info/publications/european-research-area-era-net-cofund-call-smart-electromobility-systems-technologies-2019_en
- The VDA, representing the German automotive industry, has emphasized the significance of boosting the development of high-performance charging infrastructure, particularly for long-distance and heavy-duty vehicles in the context of climate-change mitigation.
- A key focus of the VDA's plan is the advocacy for clear and ambitious CO2 emissions reduction targets, aiming to achieve CO2-neutral transport on roads by 2050, with the alignment of these targets with industry capabilities.
- To accelerate industry competitiveness, the VDA is pushing for funding and regulatory frameworks that support the development of battery and fuel cell technology, as well as the production and market introduction of electric and hydrogen fuel cell vehicles.
- The VDA has also advised on the importance of fostering collaboration within the environmental-science community, including research and development in next-generation electric drivetrains and automated driving technologies, to create a sustainable and competitive energy industry.
