The Commission has suggested various strategies to address the issue of joblessness.
In a joint letter to Ursula von der Leyen, President of the European Commission, Dr. Nicole Hoffmeister-Kraut, Minister for Economic Affairs, Labour and Tourism of Baden-Württemberg, and Hubert Aiwanger, Minister of Economic Affairs and Deputy Minister-President of Bavaria, have expressed concerns about the EU's proposed mandatory electrification of company and rental car fleets by 2030.
The ministers have highlighted the potential negative impact on the automotive industry, including manufacturers, suppliers, and medium-sized companies, warning that thousands of jobs are at risk. They have called for technology openness instead of a mandatory electrification mandate.
The EU's regulation on CO fleet targets for company and rental car fleets, which would effectively amount to a mandate for electric vehicles, is seen as undermining the effort to stabilize and strengthen the European and German automotive locations.
The ministers have emphasised the importance of maintaining technological openness, especially given the international competitive situation. Dr. Hoffmeister-Kraut has demanded consistent action that takes into account this technological openness.
In addition, Dr. Hoffmeister-Kraut has stated that the contribution of plug-in hybrid vehicles to the current CO2 fleet targets for passenger cars should be reviewed immediately. She has also welcomed the additional flexibility granted at EU level for complying with the current CO2 fleet limit regulations.
The Economic Ministers' Conference in June 2025, chaired by Dr. Hoffmeister-Kraut, has committed to the German automotive location and its jobs. The situation for the industry is dire in some parts, and the ministers have urged for a balanced approach that considers the needs of both the environment and the industry.
Recently, the EU has shown leniency towards manufacturers facing imminent fines for missing CO2 fleet limits. This leniency may provide some relief for the industry, but the ministers are pushing for a long-term solution that ensures the sustainability of the European and German automotive industries.
