On Wednesday, 5 March, European Commission President Ursula von der Leyen announced a new Industrial Action Plan to strengthen the global competitiveness of the European automotive industry. Speaking after a press statement, she emphasised the need to harness untapped potential in innovation and clean technologies.
President von der Leyen shared: “There is so much untapped potential in the global market when it comes to innovation and clean solutions. I want to see our European automotive industry taking the lead. We will promote domestic production to avoid strategic dependencies, especially for battery production.”
The European automotive sector is consistently challenged by rapid technological changes and increasing competition. In January, President von der Leyen launched a Strategic Dialogue on the Future of the European Automotive Industry – an inclusive process designed to tackle the sector’s most pressing challenges. As part of this effort, €1.8 billion will be allocated to developing a secure and competitive supply chain for battery raw materials. Other parts of the process include:
Accelerating Innovation and Clean Mobility Transition
A dedicated European Connected and Autonomous Vehicle Alliance will bring together Europe’s automotive stakeholders to shape the development of next-generation vehicles and help develop the shared software and hardware needed for this technology. These actions will be supported by joint public-private investments of around 1 billion backed by the Horizon Europe Programme over the 2025-2027 period.
More flexibility for CO2 Standards compliance
The Commission will propose a focused amendment to the CO2 Standards Regulation for cars and vans this month. This target would allow car manufacturers to offset any shortfalls in one or two years with excess achievements in the other years while keeping the overall ambition on the 2025 targets.
Supporting Supply Chai Resilience and Workers in the Sector
To help the automotive sector address skills shortages, the European Fair Transition Observatory will help to pinpoint expected future “hot spots” of employment dislocations and skills gaps. The Commission will also expand the European Globalisation Adjustment Fund for Displaced Workers (EGF) support to make it faster and broader.
Boosting the Industry’s Resilience to Compete Successfully on a Global Stage
The Commission will ensure a level playing field by using trade defence instruments, such as anti-subsidy measures, to protect European companies from unfair competition.
The European Commission’s latest initiatives signal a strong commitment to strengthening the automotive sector amid global competition and technological shifts. With significant investments, regulatory flexibility, and workforce support, these measures aim to position Europe as a leader in the future of mobility.
