EU Launches Public Dialogue on the Future of European Auto Industry

European Commission President Ursula von der Leyen with EU commissioners for the launch of the Strategic Dialogue on the Future of the European Automotive Industry. Photo source: European Commission

The European Commission has launched a public consultation on the future of the European automotive industry, initiating an inclusive and collaborative process to address critical challenges and ensure the sector’s long-term success as a key driver of the European economy.

The initiative, titled “Strategic Dialogue on the Future of the European Automotive Industry”, was launched on January 30 and will continue until February 13.

According to European Commission President Ursula von der Leyen, the initiative aims to bring together automotive industry stakeholders, social partners, and policymakers to identify key challenges and develop actionable solutions. The outcome of these discussions will shape the EU’s Industrial Action Plan for the automotive sector, which will be presented on March 5 by Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas.

Key priorities of the action plan

The upcoming Action Plan will address several critical areas, including:

– Talent and Workforce Development: Ensuring access to skilled labor in a rapidly evolving industry.
– Technological Innovation: Supporting the advancement of next-generation vehicles.
– Regulatory Frameworks: Establishing clear, predictable policies to foster industry growth and competitiveness.

“This Action Plan will chart a clear path for ensuring that our automotive industry remains competitive in Europe and on the global stage,” von der Leyen stated.

Commissioner Apostolos Tzitzikostas, who is responsible for presenting the Action Plan, emphasized the importance of this strategic dialogue in shaping the industry’s future.

Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas.

“The sector is undergoing significant structural changes driven by technological advancements, the need for decarbonization, increasing global competition, and shifting geopolitical dynamics,” he said.

“We must ensure that the green and digital transition strengthens the European automotive industry’s competitiveness and maintains its position as a global leader,” he added.

Tzitzikostas also highlighted that the Commission’s strategy will be a long-term initiative, with policies designed to enhance competitiveness, support the transition, and encourage investment.

Commissioners leading key discussions

To ensure a comprehensive approach, four additional Commissioners have been appointed to lead discussions on specific areas impacting the entire automotive value chain:

– Commissioner Wopke Hoekstra: Focus on Clean Transition in the automotive sector.
– Commissioner Stéphane Séjourné: Addressing Industrial Value Chain developments.
– Commissioner Henna Virkkunen: Overseeing Technological and Digital Innovation.
– Commissioner Natalia-Elena Intotero: Leading discussions on Skills and Social Policy in the sector.

The Council of the European Union and the European Parliament will also play an active role, receiving regular updates and participating in consultations.

The European Commission’s high-level discussion on January 30 with key European industry leaders, social partners, and stakeholders for the launch of the Strategic Dialogue on the Future of the European Automotive Industry.

The Commission’s announcement follows a high-level discussion on January 30, where representatives from leading automotive manufacturers, energy organizations, and industry labor groups actively participated. Among them were BMW Group, Renault Group, and Volkswagen Group, representing key automakers, as well as ChargeUp Europe and RECHARGE, which focus on energy and sustainability solutions. The dialogue also included ACEA (European Automobile Manufacturers’ Association), BEUC (European Consumer Organisation), and ETF (European Transport Workers’ Federation), highlighting the role of industry advocacy and labor representation in shaping the sector’s future.

Challenges facing the European auto industry

According to the Commission, the automotive sector is one of the largest contributors to the European economy, supporting over 13 million direct and indirect jobs and generating approximately 1 trillion euros in GDP.

However, the industry faces growing challenges, including:

– Global competition: Rising competition from China’s electric vehicle industry.
– Geopolitical risks: The potential for new U.S. tariffs on European auto imports under President Donald Trump’s administration.
– Sustainability pressures: The push for decarbonization and green technologies.

With these challenges in mind, the Commission’s “Strategic Dialogue on the Future of the European Automotive Industry” aims to position Europe’s auto sector for long-term success while navigating an increasingly complex global landscape.