Strategic Dialogue on the Future of the European Automotive Industry

In view of the current difficulties, the European Commission launched a "Strategic dialogue on the future of the European automotive industry" with European industry representatives, social partners and interest groups on 30 January 2025. The results of the strategic dialogue's short thematic meetings are to be incorporated into an EU action plan for the automotive industry, which the Commission intends to present as early as 5 March 2025.

"It is questionable whether the EU Commission will be able to get a comprehensive picture of the situation in the automotive industry through a few short meetings after years of the industry barely being listened to in Brussels," says cep transport expert Martin Menner. In view of the challenges, a fundamental departure from inflexible requirements that can only be met with battery electric vehicles or lead to high fines in the event of a lack of demand is necessary.

"The EU Emissions Trading System for road transport and buildings (EU ETS 2) will effectively limit CO₂ emissions from 2027 and ensure that the climate targets for road transport are met. The EU can and should therefore give manufacturers more flexibility and technological openness within CO₂ fleet emission standards in order to adapt to unforeseeable changes and also give efficient hybrids a chance," argues Menner. Options for this include "banking" and "borrowing", i.e. the temporary transfer of excess reductions, or the postponement or lowering of CO₂ reduction targets for new vehicle fleets.

For e-mobility to play its key role in the green transformation, suitable frame­work conditions such as a well-developed charging infrastructure, effective CO₂ pricing and favourable electricity prices are crucial. With a view to the global markets, the EU needs a long-term perspective for efficient hybrids powered by alternative fuels, which will be in demand worldwide for a long time to come, in order to keep the relevant expertise, research and development, production and suppliers in the EU. Europe must no longer lose touch neither with this international trend.