European regions and cities demand clear rules and solid financial backing to help Europe’s ailing car industry through the shift to electric vehicles (EVs). The European Committee of the Regions (CoR) on Wednesday adopted an opinion on the European Commission’s Automotive Package, arguing that the transition will only succeed if regions are adequately equipped to carry it.
Regions said electrification is crucial to achieving climate-neutral road transport, but that success depends on affordability and access. They called for charging infrastructure across regions, funded by European, national and regional budgets, as well as targeted demand support in lower-income regions.
“Europe’s regions and cities have spoken with one voice: competitiveness and electrification by 2035 go hand in hand,” said María Chivite, President of the Navarre region in Spain, who drafted the opinion. Europe can only lead the transition, she argued, if regions receive “real financing”.
The Commission proposed the Automotive Package in December. It suggests a 90-percent-cut in tailpipe emissions from 2035, with the remaining 10 percent offset through low-carbon steel or e-fuels and biofuels. The CoR welcomed these temporary flexibilities but warned that they must not delay zero-emission mobility.
Brigitte Torloting, Chair of the Automotive Regions Alliance (ARA) and Vice-President of France’s Grand Est region, warned that time is short and “global competition will not wait for us”. She called for a strategy that protects automotive production in the regions, backed by strong European instruments such as “European preference.” Without a clear framework and targeted investment, she said, Europe risks losing its industrial base, from small and medium-sized enterprises (SMEs) to major suppliers.
Made in the EU
“European preference” is an approach first introduced in the Commission’s proposal for an Industrial Accelerator Act in March and is designed to prioritise EU-based manufacturing. The Commission suggests public procurement contracts and state-subsidised industrial projects to source a minimum percentage of materials or components from European producers. For EV production, the Commission proposed that 70% of components for new cars – excluding the battery – must originate within the EU.
CoR members also welcomed the “Made in the EU” approach to strenghten European production but insisted it must be proportionate, so that SMEs and regional supply chains are not buried in red tape.
With automotive production concentrated in specific territories, the opinion also calls for targeted cohesion funding, skills and quality jobs.
According to EU figures for 2024, the automotive industry contributed 7 percent of EU gross domestic product (GDP), about EUR 170 billion in exports and supported around 13.8 million jobs, 3.5 million of them in manufacturing. According to CoR figures, the 41 regions organised in the Automotive Regions Alliance (ARA) generate more than 40 percent of EU GDP.
This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.
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