10-Point Paper to Strengthen the Automotive Location

With a 10-point paper to strengthen the automotive location Germany and Europe, Baden-Württemberg is participating in the newly launched strategic dialogue on the future of the automotive industry by the European Commission.

With a 10-point paper aimed at strengthening the automotive location of Germany and Europe, Baden-Württemberg is engaging in the newly launched strategic dialogue on the future of the automotive industry of the European Commission. (Symbol photo: MabelAmber/pixabay)
With a 10-point paper aimed at strengthening the automotive location of Germany and Europe, Baden-Württemberg is engaging in the newly launched strategic dialogue on the future of the automotive industry of the European Commission. (Symbol photo: MabelAmber/pixabay)

With a 10-point paper to strengthen the automotive location of Germany and Europe (PDF), Baden-Württemberg is participating in the strategic dialogue on the future of the automotive industry of the European Commission, which was initiated under the leadership of Commission President Ursula von der Leyen on January 30, 2025.

The state government calls for, among other things, an immediate review of the CO2 fleet targets for passenger cars, light commercial vehicles, and trucks, as well as the suspension of possible penalties during the review, the rapid expansion of the EU-wide charging and hydrogen refueling infrastructure, and a reduction in electricity prices at charging stations.

"We must strengthen the internal market in Europe and focus on innovations. The connected car of the future must roll off the production line in Europe and Baden-Württemberg. Both the automotive industry and politics bear a great responsibility to strengthen the citizens' trust in electromobility," stated Minister President Winfried Kretschmann in Brussels on the sidelines of the external cabinet meeting. Already on the evening before, Kretschmann had exchanged views on this with other cabinet members and representatives of the European Commission at the Baden-Württemberg State Representation.

"The automotive industry will exemplarily show how the European economy will develop in the coming years," Kretschmann further emphasized. "This leading industry includes large manufacturers as well as many small and medium-sized suppliers scattered throughout Europe. The automotive industry is investing billions in transformation, but the switch to climate-neutral vehicles is not progressing as quickly as hoped. In addition, there are looming trade conflicts and penalties. Therefore, we must do everything we can to accelerate the ramp-up of electromobility and provide the necessary framework conditions at the European level. This includes a reliable network of charging stations with attractive prices. This is crucial for people to decide to buy an electric car. Europe must become generally simpler, faster, and more dynamic."

Deputy Minister President Thomas Strobl added: "We are the cradle of the automobile. Cars made in Germany have always been among the best, safest, and most innovative in the world. This must not only be a record of past times but also the aspiration for the future. We are facing a turning point, not least because digitization and new drive technologies are completely reshaping the automotive market. All the more, we must set the course for a competitive automotive industry in Baden-Württemberg and thus also create the conditions for openness to technology."

Strategy Dialogue Bundles Expertise from Politics and Business

Kretschmann emphasized that Europe needs a well-thought-out, long-term strategy and industrial policy in key economic areas to address the challenges.

“More than seven years ago, we created the Automobile Industry Strategy Dialogue BW in Baden-Württemberg, a partnership in which we work together in a structured manner. Trade unions, manufacturers, suppliers, science, organizations, associations, and politicians have embarked on this journey together. The result is an important alliance between politics and business that has jointly advanced the central transformation topics. But it is also clear: to move the big levers, Europe is needed. And that is why I am very pleased that Commission President Ursula von der Leyen has now established a similar format at the European level.”

At the same time, Kretschmann called for the inclusion of not only the EU Parliament and the member states but also the European automotive regions closely in the European strategy dialogue. “After all, we are the ones implementing what is decided at the European level locally.”

Cabinet meets in Brussels on European policy issues

The state cabinet will meet on Tuesday, February 4, 2025, at the state representation in Brussels. On the agenda are, among other things, the European policy strategic priorities of the ministries in 2025 and the concerns of the state government for the Multiannual Financial Framework after 2027.

During the visit to Brussels, Minister President Kretschmann will speak with EU Commissioner Wopke Hoekstra, responsible for climate, net-zero emissions, and clean growth, EU Commissioner Ekaterina Zachariewa, responsible for startups, research, and innovation, as well as with Ambassador Michael Clauß, Permanent Representative of the Federal Republic of Germany to the EU. In the evening, the state government invites to a New Year's reception at the state representation, which will also be attended by Commission President Ursula von der Leyen.

10-Point Paper: "Strengthening the Automotive Location Germany and Europe with a Clear Agenda and Securing Workforces"

The German and European automotive industry is under enormous economic pressure. The situation is partly dramatic. Competition in all international markets is very challenging and currently characterized by overcapacities. This also affects the European market and the German and European production sites. A changed geopolitical situation, a weakening economy, and trade tariffs are burdening the automotive industry, which is strongly intertwined globally with target markets worldwide. Additionally, high location costs add extra pressure. The sales of passenger cars and trucks in Europe are below the level before the outbreak of the Corona pandemic. Moreover, the purchasing behavior has not developed as predicted. The result is that not only in the German market, but also in large parts of the European Union, the distribution of battery-electric vehicles is only progressing slowly. In China, however, electromobility dominates the market.

The European Union must strengthen the international competitiveness of the automotive industry and ensure optimal location conditions in the face of drastically changing geopolitical conditions while ambitiously advancing the transformation and competitiveness of the automotive sector. The automotive industry is Europe's engine of innovation, research, and prosperity. We expressly welcome that the European Commission has established a Strategic Dialogue for the Automotive Industry following the example of the Strategic Dialogue in Baden-Württemberg.

We must work together to improve the framework conditions, particularly for an accelerated rollout of electromobility in Germany and Europe, and if necessary, avoid structural disruptions through a more flexible approach. This requires regular monitoring at both the EU and federal levels, to closely and continuously analyze and evaluate the framework conditions and progress for the ramp-up of electromobility, and to develop measures. However, renewable fuels should also not be overlooked.

More on the 10-Point Paper: "Strengthen the Automotive Location Germany and Europe with a Clear Agenda and Secure Workforces" can be read at: www.baden-wuerttemberg.de/fileadmin/redaktion/dateien/PDF/Anlagen_PMs_2025/250204_Zehn-Punkte-Papier-Automobilwirtschaft.pdf

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