German auto chief slams EU policies for crippling Europe's car industry
The head of Germany's VDA auto industry group has launched a sharp attack on EU policymakers. Hildegard Müller accused Brussels of being out of touch with the struggles facing Europe's carmakers. She warned that excessive regulation and unfulfilled promises are pushing manufacturers like Stellantis, Volkswagen, Mercedes-Benz, and BMW to cut investments at home.
Europe's car industry was already under pressure before recent U.S. tariffs. Weak demand for electric vehicles, heavy investment costs, and fierce competition from Chinese rivals have squeezed profits. Stellantis, the owner of brands like Peugeot and Fiat, reported a €22 billion loss after writing down its EV operations. Meanwhile, Volkswagen, Mercedes-Benz, and BMW have all seen sales fall in key markets, particularly China.
Müller claimed the EU has failed to deliver on pledges to cut red tape for carmakers. Instead, she noted, Brussels introduced more legislation in 2025 than in any of the previous 15 years. The industry, she argued, is drowning in rules that stifle growth and innovation.
The EU Commission did propose changes in February 2025 to simplify sustainability regulations and reduce costs for small businesses. However, the Omnibus Package also weakened enforcement of supply chain due diligence rules by removing civil liability provisions. Müller dismissed the EU's partial easing of the 2035 petrol engine ban as mere 'lip service,' doing little to address deeper problems.
She also criticised the bloc's new 'Made in Europe' industrial strategy. According to Müller, the plan risks adding even more bureaucracy while making it harder for European firms to compete abroad. Nearly three-quarters of German automotive companies now say they will delay or scrap investments in their home market because of EU policies.
The warnings come as Europe's car sector faces mounting financial and regulatory pressures. With sales declining in major markets and manufacturers scaling back domestic investments, the industry's future in the region looks increasingly uncertain. Müller's remarks highlight a growing divide between Brussels and businesses over how to revive the struggling sector.
Read also:
- Ignorant Youth Unfamiliar with Quebec's Cultural Landscape
- PCOS-related Gas Buildup: Explanation, Control Strategies, and Further Insights
- Astral Lore and Celestial Arrangements: Defining Terms & In-Depth Insights - Historical Accounts & Glossary of Cosmic Mythology
- "Rural Idyls with Supercars: Astonishing Sites Where Residents Cruise McLarens and Ferraris for Groceries"
