The European Commission has initiated a public consultation aimed at shaping the future of the European automotive industry, focusing on strengthening European manufacturers against competition from China.
This initiative, known as the Strategic Dialogue on the Future of the Automotive Industry in Europe, has kicked off and will continue until February 13. Its goal is to foster collaboration among stakeholders in the automotive sector, social partners, and other relevant parties to identify critical challenges and explore viable solutions to implement.
The findings from this consultation will serve as the foundation for the EU’s industrial action plan for the automotive sector, which will be unveiled on March 5 by Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas. This plan aims to provide a clear roadmap to ensure the industry’s prosperity in Europe and its competitiveness on the global stage, as noted by Commission President Ursula von der Leyen. The automotive sector is vital, supporting over 13 million jobs and comprising approximately 7% of the EU’s Gross Domestic Product.
On January 30, the President of the European Commission gathered prominent leaders from the European industry, social partners, and stakeholders to commence the Strategic Dialogue on the Future of the European Automotive Industry. “This dialogue signifies the start of an inclusive and cooperative approach to tackle the pressing challenges facing the sector and to secure its ongoing success as a significant contributor to the European economy,” stated Ursula von der Leyen. Around twenty industry representatives participated in this dialogue, including members from the European Automobile Manufacturers Association (ACEA), the European Consumer Organisation (BEUC), and car manufacturers such as BMW, Daimler Truck, Renault, Volkswagen, Iveco, Traton, and Volvo, as well as the European Automobile Suppliers Association (CLEPA) and the European Transport Workers’ Federation (ETF).
In addition to Commissioner Ap. Tzitzikostas, four other Commissioners will lead discussions on key topics related to the entire automotive value chain. Commissioner for Climate Wopke Hoekstra will address the Clean Transition within the automotive sector, while Commissioner for Industrial Strategy Stéphane Séjourné will focus on the Industrial Value Chain. Vice-President responsible for Digital and Technological Sovereignty Henna Virkkunen will oversee discussions on Technological and Digital Innovation, and Executive Vice-President for Social Rights Roxana Minzatu will tackle issues regarding Skills and Social Matters within the sector.
The European Commission is called upon to balance the EU’s environmental goals with the urgent needs of the European automotive industry, which risks penalties if it fails to meet carbon dioxide (CO2) reduction targets. The Commission has indicated a willingness to show “flexibility” with environmental targets for the automotive industry in countries like Germany, France, Italy, and other member states heavily impacted by competition from China. Simultaneously, concerns arise over the potential for increased customs duties on European cars with the possible return of Donald Trump to power in the United States.
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