The German Automotive Industry – Transition Plans for the Future

The automotive industry is a supporting pillar of Germany's industrial location and prosperity. The electrification of the drivetrain with the aim of climate-neutral mobility, as well as digitalisation and autonomous driving, will require a fundamental transformation of the automotive industry in the coming years.

To successfully coordinate structural challenges and thus secure competitiveness and resilience, a forward-looking financing strategy is required. Such a strategy primarily aims at mobilising private capital and depends on efficiently syncronising and addressing decision making needs from the financial and real economy. The overarching importance of a reliable policy framework from targets through to instrument design aside, financial decision making and such within corporates across the automotive value chain can and should be better coordinated.

Together with experts from the automotive industry, the financial sector and academia Made in Germany 2030 is developing a proposal for a credible transition plan template for the automotive industry. Such a template of a sectoral transition plan needs not only to address financing aspects of structural change, but also to ensure compatibility with existing disclosure obligations, thus allowing companies to benefit from targeted efforts. It supports companies by reaping synergies from focusing on transformational business planning and meeting large parts of sustainability reporting requirements as they go. Transition plans are vital strategic tools serving as a navigation system for businesses, ensuring consistent information sharing across reporting requirements.