Economic Policy, Foreign Trade & Customs, SME Policy and Taxation

At the national level, the economic policy framework is crucial in order to appropriately support the transformation of industry toward alternative drive systems and to strengthen the automotive industry as one of the most important industrial sectors in Germany. The department supports fundamental industrial policy and strategy issues relating to investment and innovation and coordinates economic policy concerns and developments relevant to the industry at the location.

In the area of corporate taxation, the department is working to overcome the reform standstill of recent years. Structural modernization, legal certainty through acceleration of procedures, intensification of cross-border cooperation between tax authorities and a competitive tax burden determine the location conditions for globally active companies in the automotive industry in Germany and, in particular, for the German parent companies.

Furthermore, the monitoring of the availability of raw materials is located in the department. For a key technology such as battery-electric mobility, materials are used that were previously only used to a limited extent or not at all in the automotive industry. Raw materials such as lithium, cobalt, nickel and graphite are new components in the automotive value chain. In order to accompany the change, the VDA is working with its member companies and external cooperation partners on the availability and sustainable procurement of raw materials identified as critical. Regular analyses of the supply and demand situation of individual raw materials are intended to identify potential bottlenecks at an early stage in the sense of strategic raw material management.

Access to foreign markets is essential for companies in the German automotive industry. More than 70 percent of German passenger car production is sold abroad. Long-term growth is taking place primarily in markets outside the "triad" (Europe, USA and Japan): in Asia, Latin America and other emerging markets with increasing motorization.  With over 2,500 production sites, German manufacturers and suppliers are represented on world markets outside Germany. Production abroad is now twice as high as that on the domestic market.

Trade and investment policy as well as customs and export control issues are of particular importance at a time when many countries are struggling to reduce trade barriers. The VDA is committed to free and rule-based trade, also in order to secure and strengthen Germany and Europe as production locations. The EU must expand its network of trade and investment agreements and take appropriate account of technical developments (electromobility, digitalization, VAF).

Cluster International Association Partnerships Africa & India
With financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ), the VDA is conducting two association partnerships with partner associations in India and Africa. These are organizationally combined in the "VDA Cluster International Association Partnerships Africa & India" and offer member companies a variety of opportunities for cooperation and contact mediation.

Support for foreign trade fairs and delegation trips
In addition, the "Foreign Trade, Commerce and Customs" department also accompanies and supports VDA members on foreign markets with attractive offers for participation in foreign trade fairs or information and delegation trips to interesting markets.

Close cooperation in the value chain plays a decisive role in the joint success of OEMs and suppliers. Most of the value added to the end product - around 75 percent - is provided in upstream and intermediate stages.

With around 300,000 employees, the German automotive supplier industry stands for innovative spirit, global presence and performance like hardly any other industry. Yet the industry is anything but homogeneous. Just as individual as these companies are, the answers to the questions of the future must be the same for each individual company. And yet there are some commonalities:

This applies above all to Germany as a location: it is and will remain the home of the supplier companies and also the focus of production and development. Nevertheless, the answer to the location question is no longer automatic. Even today, the majority of parts used by vehicle manufacturers in German plants are imported from abroad. A wise economic policy must therefore take into account that it is precisely small and medium-sized enterprises that form the backbone of the German automotive industry.

The Corporate Policy and Small and Medium-Sized Businesses department is responsible for bundling the issues and concerns of suppliers and small and medium-sized businesses, formulating political messages from the perspective of these companies and representing their specific interests within the VDA. In addition, the objective is to facilitate and improve cooperation among the manufacturer groups (including development service providers).