Volkswagen has presented a detailed twelve-point policy proposal to negotiators from the CDU, CSU, and SPD amid ongoing coalition talks, outlining its vision for strengthening Germany’s automotive industry with a focus on electromobility.
The document, titled Masterplan for a Competitive German Automotive Location, has been submitted to party leaders and will also be shared with Volkswagen employees, according to Handelsblatt, which obtained an advance copy. The Wolfsburg-based automaker emphasizes the need for a stable industrial policy and a globally competitive business environment, while also calling for strong government support for electric vehicles (EVs).
“The future of individual mobility will be electric,” Volkswagen states in the paper. “This is the fastest and most efficient way to decarbonize the transport sector.” The company proposes a series of policy measures, including tax incentives such as extending EV exemptions from vehicle tax beyond 2030 and increasing the tax differentiation between combustion-engine vehicles and electric cars, including for company fleets.
Calls for ‘Social Leasing’ and Affordable Public Charging
As part of its strategy to encourage EV adoption, Volkswagen proposes a “social leasing” program aimed at helping low-income households switch to electric cars at a reduced cost. Although details are not specified, the company suggests financing the program through the EU’s Social Climate Fund starting in 2026. This initiative could benefit upcoming affordable electric models like the ID.2all and ID.EVERY1.
The automaker is also pushing for stricter requirements for fast-charging infrastructure at fuel stations, beyond the existing regulations set to take effect in 2028. Additionally, Volkswagen recommends tax relief to lower public charging costs, making EV ownership more financially attractive.
However, Volkswagen appears cautious about short-term EV sales growth. The company is advocating for an extension of the EU’s planned three-year delay in CO2 fleet limits to five years and calls on the next German government to suspend emissions-related fines for passenger cars, vans, and trucks in 2025 and 2026. The paper also urges a revision of fleet emissions calculations to account for plug-in hybrids and e-fuels.
Industry Competitiveness and Regulatory Reforms
Beyond EV incentives, Volkswagen is calling for policies to bolster Germany’s industrial competitiveness. The automaker seeks an industrial electricity price of approximately six cents per kilowatt-hour to sustain battery cell production and other energy-intensive manufacturing in Europe. The company also highlights the need for “innovation-friendly” regulations in autonomous driving and software-defined vehicles, advocating for faster approval processes, targeted research funding, and the removal of bureaucratic barriers.
Volkswagen is currently undergoing significant restructuring, with plans to cut approximately 35,000 jobs by the end of the decade as part of cost-saving measures agreed upon in December 2024. While no German plants are slated for closure, several locations face uncertain futures.
The letter’s direct appeal to political leaders is considered unusual, as such lobbying efforts are typically conducted through industry associations like the German Automotive Industry Association (VDA). Handelsblatt sees the move as a sign of the urgency Volkswagen CEO Oliver Blume places on securing favorable policy conditions.