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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 the state of Baden-Württemberg, and Hubert Aiwanger, Minister of Economic Affairs and Deputy Minister-President of the Free State of Bavaria, have expressed concerns about a proposed EU regulation that could mandate the electrification of company and rental cars by 2030.

The regulation, known as the "Corporate Sustainability Reporting Directive" (CSRD), has been criticised by the ministers for its potential impact on thousands of jobs in the European and German automotive industries. Aiwanger believes that bureaucracy should not brake investments in climate-friendly technologies.

Both ministers have advocated for openness to all technologies in Europe, including synthetic fuels, hydrogen, and efficient hybrid solutions. They believe that the future of the automotive industry lies in innovation, not in directive-driven requirements and double regulation.

Aiwanger, like Dr. Hoffmeister-Kraut, demands consistent action that takes into account technological openness, especially in view of the international competitive situation. This means that there should be no mandatory electrification of company and rental cars, and the contribution of plug-in hybrid vehicles to the current CO fleet targets for passenger cars should be reviewed promptly.

The ministers welcomed the additional flexibility granted at EU level for complying with the currently valid CO2 fleet limit requirements. They also demanded that companies' financial scope for investments in innovation and transformation should not be restricted.

At the Economic Ministers' Conference in June 2025, under the chairmanship of Dr. Hoffmeister-Kraut, a commitment was made to the automotive location Germany and its jobs. The ministers have consistently advocated for stabilising and strengthening the European and German automotive locations.

Aiwanger has also expressed concern that new regulations and bans could endanger medium-sized businesses and jobs in the supply industry. He emphasises the need to master the transformation and secure the German automotive location.

The ministers believe that the EU should focus on innovation as a means to decarbonization, rather than implementing directive-driven requirements and double regulation. They expect the EU to strengthen the innovation power of industry and facilitate investments in climate-friendly technologies.

The ministers' call for flexibility in the proposed regulations comes at a critical time for the automotive industry, as it navigates the challenges of the energy transition and maintains its competitiveness on the global stage.