Let’s not abandon the automotive industry

As the automotive industry faces mounting challenges, its vital contribution to the EU's economy hangs in the balance. Manfred Weber and Jens Gieseke emphasize the urgent need for action to protect jobs and sovereignty, advocating for technological neutrality and a robust support plan to ensure Europe’s competitiveness in mobility.

With 13 million jobs, 255 factories, and 15 million vehicles produced annually, accounting for up to 7% of the EU’s GDP, it is no exaggeration to say that the automotive industry is the beating heart of European industrial power. Conceived by brilliant, visionary engineers, Europe's iconic brands have exported unique expertise worldwide, built up over years of innovation and passion. Unfortunately, this beating heart is struggling, gradually undermined by various economic factors and political missteps with disastrous consequences. In Germany, France, Italy and Belgium, every day brings announcements of factory closures and the likely layoffs of thousands of workers. When once rock-solid flagship companies suddenly falter, the whole of Europe is shaken. The situation is critical; it is not just about job losses, it is about the very sovereignty of our continent. We in the EPP refuse to stand by idly and remain steadfast in our belief that the future of mobility must be shaped in Europe, not China.

Achieving this goal will require the necessary efforts. Europe has already started to respond, notably by drastically increasing tariffs on Chinese electric vehicles. But that won’t be enough. The first crucial challenge is to give companies some breathing space. Today, instead of innovating, an entrepreneur wastes considerable energy managing regulations and seeking subsidies to comply with them. This is not sustainable. We can set goals, but we must let the industry, engineers, and researchers decide how to achieve them. Of course, the fragmentation of national legislation does not help. Nevertheless, it is essential to harmonise and simplify the rules and to get out of this absurd situation in which we are tying up our own economic players, even though they are capable of producing what is essential for tomorrow's prosperity. In this sense, the next Commission must make real progress in creating a genuine single market, both for goods and for capital. 

Moreover, with production in jeopardy and the electric vehicle sector facing a severe demand crisis, we cannot continue as if nothing is happening. We must avoid penalties for European manufacturers in 2025 and, if penalties are unavoidable, they must be reinvested to support the European automotive sector itself. To restore our competitiveness, we need a European plan that truly supports our automotive industry and the jobs it creates. 

We also need to be objective about what doesn't work. The transition to electric mobility envisaged in the "Fit for 55" plan is a step in the right direction. But the goal of ending the sale of combustion engine cars by 2035 seems, more than ever, completely unrealistic. The Renew Group and left-wing parties made a mistake by legislating against our industry. During the campaign, the EPP promised to address this situation, and Ursula von der Leyen pledged to present a revision of the legislation. Given the critical situation in the automotive sector, this issue cannot be taboo. The forthcoming 2035 ban on internal combustion engines should be reversed to reflect technological neutrality. Our history of innovation shows that technological neutrality has always been a success story for European mobility. Allowing a mix of technologies provides the flexibility to meet climate targets without stifling innovation or damaging the industry. 

Finally, the Green Deal is about creating jobs in Europe, not China. By the first half of 2024, Chinese brands represented over 10% of new electric vehicle sales in the EU, a striking increase from almost zero in 2019. China controls essential raw materials for batteries, while Europe’s battery production lags. We did not reduce our dependence on Russian gas only to become reliant on Chinese batteries. As stated in the EPP election manifesto, we must develop a new resource strategy before it is too late. We cannot afford to lose another "solar panel war" to China. We also need a faster roll-out of electric vehicle infrastructure. To achieve this, the EU and its Member States must streamline approval processes and offer financial incentives. This would help more charging stations to be built quickly, including those for homes and heavy-duty vehicles. 

If the previous mandate was about the Green Deal, the next one will be about competitiveness. That is why the EPP Group has initiated a summit with the CEOs of the European car industry. President von der Leyen has announced that she will also convene a Strategic Dialogue on the Future of the Car Industry in Europe. As a key sector of our economy, we need to address the outstanding issues with the urgency they deserve. We must ensure the competitiveness of Europe's industrial core. 

Manfred Weber, EPP Chairman

Jens Gieseke, EPP Coordinator - Committee on Transport and Tourism (TRAN)

Disclaimer – All opinions expressed in this column reflect the views of the author(s) and do not necessarily represent the views of EXPERT EUROPE or its editorial team.