Economy minister presses EU for technology-neutral car policy

German Economy Minister Katherina Reiche called on the European Commission to adopt a more technology-neutral approach to the car industry, saying Brussels should further ease fleet emissions rules to help manufacturers manage the transition to cleaner vehicles.

"It is important that Brussels now delivers on making fleet regulation flexible enough to ensure that no fines are imposed," Reiche said in a video interview with dpa.

She said the commission should introduce more flexible carbon dioxide emission limits and adjustment mechanisms so that carmakers could help shape the industry's transition.

"They want to, they can. The range offered by our carmakers is impressive. But the transition takes time and money," Reiche said.

"Fines deprive companies of the funds they need to invest in the transition."

Reiche said manufacturers needed a broad range of powertrain technologies to compete in automotive markets around the world.

Carmakers face penalties if they fail to meet EU fleet carbon dioxide emissions targets. In May 2025, EU member states agreed to give European carmakers more time to comply with the bloc's climate rules by allowing compliance to be assessed on average over the 2025-2027 period instead of annually.

The car industry is undergoing a major shift towards lower-emission vehicles, while many German manufacturers have reported falling profits amid weak demand, particularly in China. BMW on Thursday reported a decline in earnings, citing weakness in its Chinese business.

Reiche also said allowing sustainably produced steel to count towards regulatory requirements could help create demand for greener, more expensive steel while encouraging policymakers to assess the environmental footprint of an entire vehicle rather than focusing solely on its drivetrain.