East German car industry calls for barriers to be removed

The eastern German automotive industry has called for the removal of barriers and more predictability in view of the difficult situation in the sector. From the perspective of the Automotive Cluster East Germany (ACOD), the use of electric vehicles must become more attractive and companies must be given more freedom.

The current economic and energy policy is unsettling the big players and pushing medium-sized and smaller companies to their limits, criticized ACOD Chairwoman Petra Peterhänsel at a congress in Dresden.

"We are calling on European and German decision-makers to be more open to technology, less regulation, stability and predictability when it comes to energy costs," she said. "This makes us resilient and ensures the market success of the East German automotive and supplier industry."

Saxony's Minister President Michael Kretschmer (CDU) insisted on an end to technological restrictions on drive systems. "We must remain open to technology in order to lead the automotive state of Saxony into a successful future." The Free State wants to provide more support for suppliers with innovation funding. Kretschmer sees energy costs as the most pressing problem. "There is an urgent need to address the energy transition and reduce the price of electricity."

Kretschmer: A different economic policy needed overall

In view of the challenges, a different economic policy is needed overall instead of the state constantly "micro-managing how things should work" through regulations, bureaucracy and control, said Kretschmer. Instead, freedom and opportunities are needed for possible changes "with performance, pioneering spirit and innovation".

Brandenburg's Economics Minister Jörg Steinbach (SPD) sees the need to systematically reduce unnecessary bureaucracy. Experience in his state has shown that it and "obstructive obsession with guidelines" scare off valuable investors.

The recognized expertise and experience of East German specialists is an asset that must be preserved. A catalog of urgent proposals to reduce bureaucracy is needed in order to reduce effort and costs in companies and speed up planning and approval procedures. The example of Tesla shows opportunities to "inspire other global players to come to eastern Germany".