The German automotive industry is pivoting toward increased collaboration in response to the ongoing sector crisis.

The solution cannot be for each company to attempt to navigate these challenges in isolation, VDA industry association President Hildegard Müller stated in Berlin on Thursday. "Innovation requires critical mass. This is why we need more cooperation, more partnerships, and more alliances," she said, referring to areas where companies do not directly compete.

Earlier this year, the industry reached an agreement to collaborate on software development, with the first non-proprietary software solutions expected to be available later this year. "We must replicate this success story in other fields," Müller added.

At the same time, she called for political support, emphasizing that the current situation is not merely an automotive industry crisis, but a crisis of Germany as a business location. She noted that the lack of national competitiveness is currently the greatest challenge for companies, leading to a trend toward relocation. The industry has proven its commitment to the transformation, she argued. "That is why it is so vital that decisions are made in Berlin and Brussels in 2026 that secure future prosperity, growth, employment, and innovation here." This includes European trade policy, she noted: "Open markets and reliable trade agreements are central prerequisites for an export-oriented industry like ours."

(Report by Christina Amann. Edited by Olaf Brenner. For inquiries, please contact our editorial office at Berlin.Newsroom@thomsonreuters.com (for politics and economics) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets))