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The EU’s action plan for the future of the automotive industry was presented today in Brussels by the Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas.
“It is a plan to keep Europe’s car manufacturers, suppliers, and related service sectors innovative, competitive, and firmly anchored in Europe,” said Apostolos Tzitzikostas, noting that the sector contributes 7% to the EU’s GDP and employs approximately 13.8 million people.
According to the Transport Commissioner, the European automotive industry is threatened by various risks concerning the supply chain, energy costs, staffing shortages, protectionism, and excessive reliance on imported supplies that put immense pressure on the industry. Additionally, European companies lag in key strategic technologies, such as batteries, software, and autonomous driving.
Today’s action plan is only the beginning and outlines flagship initiatives in five areas: innovation and digitalization, clean mobility, the competitiveness and resilience of the supply chain, skills, and a level playing field.
To turn this ambitious plan into action, the Transport Commissioner emphasized that up to 50 billion euros are available under InvestEU for clean technology and clean mobility, 1.8 billion euros from the Innovation Fund for battery construction, 1 billion euros from Horizon Europe for connected and autonomous vehicles and batteries, and 570 million euros under the Alternative Fuels Infrastructure Facility for charging points, with a focus on trucks. Additionally, 90 million euros are available from Erasmus+ for workforce training, along with additional funding for SMEs.
Regarding digitization, the Transport Commissioner explained that it is not just a priority but the heart of everything we do for the future of the European automotive industry. “We need more R&D and innovation. We must bring the results to market. And we must regain our leadership in AI-powered vehicles,” noted Apostolos Tzitzikostas, admitting that China and the USA are leading in the related competition.
Concerning clean mobility, the Transport Commissioner stressed that “we need to be pragmatic” and that instead of annual compliance, companies will exceptionally have three years, 2025, 2026, and 2027, to meet the goals. Thus, if a company does not reach the targets in 2025, it has two more years to achieve them, making a greater effort. Similarly, if a company exceeds the targets in 2025, it will be under less pressure in 2026 and 2027. On this, Apostolos Tzitzikostas announced that the revision of CO2 emissions standards legislation will take place in the third or fourth quarter of 2025 instead of 2026.
Electric vehicles already represent 15% of sales in the EU, and to increase this percentage, the Commission plans to legislate favorably for corporate car fleets, which currently represent around 60% of new registrations in the EU. Member states could consider providing tax advantages for zero-emission vehicles, setting rules for taxis and car-sharing services based on their emissions. Or they could encourage rental companies, especially those used by tourists for short trips, to use zero-emission cars. At the same time, the Commission will encourage social leasing programs for low-income citizens, as well as faster charging point installation and connection to electricity grids.
Electric car batteries represent 30-40% of the value of a typical electric car and are a key driver of jobs and economic competition. “To compete, Europe needs its own supply. This means producing them ourselves,” stressed the Transport Commissioner. The “Clean Industrial Deal,” presented by the Commission last week, also announced a new Center for Critical Raw Materials. From 2026, it will offer automotive industry players access to low-cost materials.
Furthermore, the Transport Commissioner emphasized that the social dimension and those concerned about their jobs should not be overlooked. As he said, changes in global demand and production, economic crises, and geopolitical uncertainty have led to car factory closures. That is why he noted that we “must train and attract workers with skills for a digital future.”
Additionally, he mentioned that a “European Observatory for Fair Transition” will follow employment trends across the automotive industry’s entire value chain, anticipate threats, and design targeted support in advance. At the same time, the European Globalization Adjustment Fund for Displaced Workers already supports employees laid off due to restructuring.
Finally, Apostolos Tzitzikostas stated that the Commission will continue to pursue Free Trade Agreements and international partnerships for a level playing field and for access to the market and critical materials. All these actions described in the action plan for the future of the European automotive industry will ensure that the next generation of vehicles is not only built in Europe but also innovative and powered by European technology. “This is just the beginning. We will continue to work with all stakeholders for a more resilient, more competitive, more sustainable European automotive industry,” said the Transport Commissioner. (5/3/2025)