WOLFSBURG/HANNOVER (dpa-AFX) - VW Board Member for Technology Thomas Schmall is calling for a significantly faster pace of reform in Germany. Speaking with the Deutsche Presse-Agentur ahead of the Hannover Messe, he stated that Germany is by no means lagging behind technologically. However, for this to translate into economic success, the country must adapt more quickly and improve its framework conditions.
Schmall intends to use the trade fair, which begins next Monday, to lobby the numerous politicians in attendance for bolder reforms. Chancellor Friedrich Merz (CDU) will open the world's largest industrial showcase on Sunday evening and is expected to tour the fair on Monday. Other federal politicians have announced their attendance, including Economy Minister Katherina Reiche (CDU), Research Minister Dorothee Baer (CSU), and Digital Minister Karsten Wildberger (CDU).
Growth Engine Sputtering
"The Hannover Messe shows that we are capable of technology," says Schmall. He noted that VW has demonstrated this, for instance, by developing its first in-house battery cell in Salzgitter within three years, which will be on display at the Group's stand. "This is proof that we can deliver cutting-edge technology in the shortest possible time."
"The question is: can we continue to manufacture this competitively in Germany given the current cost structures and framework conditions?" High energy prices and excessive bureaucracy are major concerns for him, stating that these factors have caused the innovation and growth engine to sputter.
Bureaucracy Hampering Innovation
"We have over-regulation, particularly when dealing with new technologies," says Schmall. He noted that Germany has 60 to 70 percent more regulations than other Western European countries. "I won't even start with China." As an example, he pointed to the setup of the company's own battery production. "In Salzgitter, for instance, there were requirements to install fire protection systems that don't even exist globally. I believe we are clearly overreaching there."
To change this, Schmall believes a joint effort between politics and industry is required. "If we want to continue industrializing high-end technology in Germany, then politicians and the business community must now jointly deliver a 'Made-in-Europe' reform program," he says. "Otherwise, it will likely be very difficult to put the country back on a growth trajectory."
Call for Faster Reforms
Companies must also play their part, but politicians must ensure better framework conditions and, above all, accelerate the pace of reform. "We have to release the handbrake and pick up speed again," says Schmall. "The current speed of transformation will not be enough."
Schmall sees his own company as well-positioned in this regard. "Volkswagen has already changed significantly. We are well on our way with the key technologies of e-mobility." He added that with the efficiency programs launched in recent years, the Group is "more robust, more capable of taking action, and better positioned today."
At the same time, the company remains committed to Germany as a location. "As Volkswagen, we stand for value creation in Germany," Schmall emphasizes. "We want to continue industrializing here. But for that, we must now create the conditions to make it economically viable."/fjo/DP/zb
