Europe seeks to connect with the automotive industry to recover from the crisis

European Commission President Ursula von der Leyen opens dialogue with manufacturers, starting in January 2025

By: Massimo Grassi

Dec 22, 2024 at 3:50am ET

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The year 2024 of the car in Europe is likely to end with sales almost equal to those of 2023, with many fears for 2025. Amidst increasingly fierce competition from Chinese manufacturers, the economic crisis and the looming 2035 mandate which is becoming increasingly controversial, there are many hot topics in the Old Continent.

This is why European Commission President Ursula von der Leyen has announced her intention to open a 'Strategic Dialogue on the Future of the Automotive Industry in Europe'. It is intended that a discussion between institutions and manufacturers will be officially launched as early as January 2025. The aim is to - quoting from the Commission's website - 'rapidly propose and implement the measures that the sector urgently needs'.

The key points

In her speech to the European Parliament on 27 November, Von der Leyen identified what should be the pillars at the centre of the dialogue:

- stimulate data-driven innovation and digitisation, based on forward-looking technologies such as artificial intelligence and autonomous driving.

- support the decarbonisation of the sector, in an open technological approach, given its role in achieving Europe's ambitious climate targets address issues related to jobs, skills and other social elements of the sector.

- simplify and modernise the regulatory framework.

- increasing demand, strengthening the sector's financial resources, its resilience and its value chain in an increasingly competitive international environment.

These focal points will 'produce a set of recommendations that will help build a holistic EU strategy for the sector to manage the various challenges and, where necessary, adapt the applicable EU regulatory framework accordingly. Summit meetings, led by the President, will review the progress made and provide the necessary political impetus for further work'.

Speaking about the initiative von der Leyen said 'The automotive industry is a European pride and is crucial for Europe's prosperity. It drives innovation, supports millions of jobs and is the largest private investor in research and development. Each sector has unique needs and it is our responsibility to adapt solutions that are both clean and competitive. We must support this industry in the profound and disruptive transition ahead. And we must ensure that the future of cars remains firmly rooted in Europe. That is why I have called for a strategic dialogue on the future of the European automotive industry. We will start this dialogue already in January, to shape our common future together.

What will happen?

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It is clearly impossible to know what will come out of these meetings. What is clear, however, is that Europe is opening up - we will have to see how much - to the demands of European carmakers (represented by ACEA, which recently welcomed Stellantis, after leaving in 2022 at the behest of Carlos Tavares) to review European policy on emissions and the discontinuation of combustion engines. In spite of what was stated a few days ago by the European Commissioner for Climate, Wopke Hoekstra, who when questioned by Reuters, replied with a dry "No. The answer is no" on the subject of postponing the new CO2 limits.

Who knows, maybe a car incentive plan could be launched at a European level, as recently requested by the Italian Government, as could be seen from the point that speaks of "strengthening the financial resources of the sector". Certainly, there will also be talk of duties on Chinese electric cars, a measure that started a few weeks ago and was opposed by some manufacturers, Germany first and foremost.