German auto trade bodies locked in bitter power struggle over fees

Conflict Between German Auto Trade Associations Escalates into a Power Struggle

The dispute between the German Association of the Automotive Industry (ZDK) and the Federal Guild Association of Motor Vehicle Trades (BIV), driven primarily by the state branches of North Rhine-Westphalia and Bavaria, has long since lost any semblance of objectivity. What began as an effort to reorganize structures and ensure fair distribution of membership fees has devolved into a strategic battle for power, influence, and dues—one that is inflicting severe collateral damage on businesses and guilds alike.

Accusations, Distortions, and Calculated Escalation

In a circular letter dated March 17, the NRW Automotive Association accused the ZDK of curtailing the BIV's participatory rights, introducing a "ruinous" fee structure, and even attempting to charge "fees for using the industry logo." Yet a closer look at the underlying documents—including the ZDK's March 16 letter—reveals a different picture: facts are being twisted and fears stoked to justify a breakaway movement.

In reality, the ZDK recently reformed its bylaws to place all member associations on equal footing—after Bavaria, North Rhine-Westphalia, and Rhineland-Palatinate withdrew from the umbrella organization. Previous special privileges enjoyed by the BIV, which stemmed from its dual membership in both bodies, have simply become obsolete.

The alleged "€2.8 million financial burden" is equally misleading—a deliberate exaggeration. This figure only emerges if the ZDK's per-business fee is extrapolated across the entire BIV membership, even though the BIV has simultaneously decided to retain 95% of all previous joint membership dues for itself.

Trademark Law as a Political Weapon

Even more troubling is the way trademark law is being weaponized. It is legally uncontroversial that a former member association must pay a licensing fee to use a protected collective trademark. Yet the NRW branch has spun this into a narrative of "financial blackmail." This tactic does not harm the ZDK so much as it sows uncertainty among its own guilds, whose members now face doubts over whether they can lawfully continue using the familiar master craftsman logo.

Adding to the audacity is the claim that the real reason for leaving the ZDK-BIV joint offices was the association's supposed closeness to the German Association of the Automotive Industry (VDA)—rather than the actual dispute over the AKÜ (a technical committee). This assertion strains credulity.

A Blow to the Entire Industry

The fallout from this conflict now extends far beyond the associations themselves. Independent and franchised workshops—businesses competing daily while grappling with training challenges, the shift to e-mobility, and the search for skilled labor—deserve guidance, not power games, in these critical times. Yet these very entrepreneurs are being used as pawns. Instead of unified representation, they face self-imposed gridlock and territorial thinking, fueled by personal rivalries and regional defiance.

There may be legitimate differences of opinion on how an umbrella organization should be structured. But one must ask: Does a state association leadership that feeds its members distorted information and provokes legal battles truly act in the best interest of tradespeople—or in its own?

The automotive trade stands at the threshold of a profound transformation: digitalization, upskilling, cost management, and process optimization demand collective effort. Yet instead of looking ahead, key figures are mired in fee calculations and letterhead disputes. It is a pitiful spectacle, one that severely undermines the decades-long trust between craftsmen, retailers, and industry.

If the BIV and ZDK genuinely aim to strengthen Germany's automotive sector, they must immediately abandon the blame game. The responsibility they bear for tens of thousands of small and medium-sized businesses is far too great to squander in internal power struggles.