Brussels, 28 January 2025
EU Commissioner Tzitzikostas Speech at the High-Level Hearing: Supporting European Automotive Sector to Meet EU Green Transition Goals in Global Competition
[Opening Remarks]
Honourable Members of Parliament,
It is an honour and a privilege to address you on a topic of such vital importance for the European economy: the European automotive sector’s continued competitiveness and green transition.
The automotive industry has long been a pillar of the European economy. From the iconic brands that define our automotive heritage to the millions of jobs across the continent, this sector has contributed massively to Europe’s prosperity. It drives innovation as Europe’s largest private R&D investor and contributes to a positive trade balance, with exports surpassing imports by over €100 billion annually.
Let me take this opportunity to thank the Parliament, particularly Mr. Oetjen, for this initiative, along with all honourable members who daily contribute to this critical discussion.
[Challenges in the Automotive Sector]
We are navigating a complex ecosystem and challenging times for the automotive sector. Several challenges stand out:
- High energy prices impacting global competitiveness.
- The need for accelerated progress towards greater sustainability.
- Labour and raw material shortages.
- Falling demand within the EU market.
- Unfair competition due to heavy subsidies and overcapacity in China.
- Losing ground in critical technologies such as batteries, microelectronics, and software.
The consequences are clear: production volumes remain below pre-COVID levels, suppliers face cost pressures, factories are closing, and thousands of jobs along the value chain are at risk.
[Ensuring Regulatory Stability and Confidence]
Regulatory stability is essential at this pivotal moment. This entails:
- Providing certainty to market investors.
- Inspiring confidence among consumers.
While calls to fundamentally change the regulatory framework could undermine both investment and confidence, adjustments to reflect new developments are necessary. As President von der Leyen has announced, targeted amendments to CO2 standards for cars and vans will ensure a technology-neutral approach.
We will not let down a sector that directly and indirectly supports 13 million jobs and constitutes 7% of EU GDP.
[Technological Innovation and Leadership]
Technological advancements are key to ensuring competitiveness:
- Enhancing innovation in emerging fields such as software and next-generation batteries.
- Closing the innovation gap through the Competitiveness Compass, which will be presented tomorrow.
- Expanding connected and autonomous mobility by leveraging AI and safe automated driving technologies.
- Establishing cross-border innovation testbeds.
These advancements will open new markets, minimize fossil fuel dependence, and create opportunities across the value chain.
[A Whole-Value-Chain Approach]
The Clean Industrial Deal, to be unveiled in February, will address critical challenges:
- Ensuring access to affordable energy.
- Advancing circular economy principles.
- Enhancing resilience and mitigating supply chain risks, especially for critical battery materials and high-tech components.
Reducing Europe’s current 80% dependency on China is a top priority.
[Level Playing Field and Diversification]
To strengthen resilience and diversify supply chains, we will:
- Deepen ties with like-minded countries.
- Address non-market overcapacity.
- Explore ways to guide third-country direct investments in Europe’s automotive supply chain.
[Stimulating Demand and Infrastructure Development]
The market for electric vehicles (EVs) is growing—one in five vehicles sold globally last year was electric. To further boost demand, fiscal policies, particularly for corporate fleets, play a crucial role. For instance, Belgium tripled its sales of battery vehicles within two years of implementing fiscal incentives for corporate entities.
Infrastructure development is equally crucial. The Alternative Fuels Infrastructure Regulation sets minimum targets for recharging and hydrogen refuelling infrastructure. However, grid connection delays (up to three years in some countries) and limited capacity are significant obstacles. The Commission is working to:
- Improve transparency in grid capacities.
- Accelerate connection procedures.
- Prioritize funding for charging infrastructure.
By the end of this year, we will present Sustainable Transport Investment Plans to accelerate the deployment of sustainable transport fuels.
[Workforce Transition]
The transition to a green automotive sector must include opportunities for workers in traditional manufacturing roles. This includes creating high-skilled jobs in EV production, battery manufacturing, and green technologies.
[Strategic Dialogue on the Future of the Automotive Industry]
This Thursday, President von der Leyen will launch the Strategic Dialogue on the Future of the European Automotive Industry. This initiative will bring together manufacturers, suppliers, infrastructure representatives, technology leaders, and social partners to develop practical solutions and inform the EU Industrial Action Plan for the sector, set for release in 2025.
The car of the future is clean and connected. Europe’s automotive industry has a bright future, but achieving it requires decisive, collective action today.
Thank you.
Source – EU Commission (edited by IEU)
ECR Group: EU Commission’s automotive dialogue risks failing before it even begins
27 January 2025
The European Commission’s Strategic Dialogue on the Future of the Automotive Industry, announced last year by President Ursula von der Leyen and scheduled to commence on 30 January, has already sparked widespread concerns over its credibility and inclusivity.
Although intended as a collaborative effort to address a crisis in one of Europe’s most vital industries, the initiative is criticised for failing to adequately represent the sector’s diversity and challenges.
ECR Coordinator in the Environment Committee, Alexandr Vondra said:
“The exclusion of key players in the European automotive value chain, such as small and medium-sized manufacturers, suppliers, and innovators, sends a troubling signal.
“Instead, the guest list prioritises CEOs of major car manufacturers, predominantly from Germany and France, alongside companies with significant third-country ownership, such as Tesla, Volvo, and non-governmental groups like T&E (Transport & Environment). These choices raise doubts about the Commission’s seriousness in tackling the industrial crisis with the urgency and breadth it demands.”
According to Mr Vondra, this lack of representation ignores the complex ecosystem that sustains Europe’s automotive sector, excluding critical contributors to broader industrial resilience. Moreover, allowing companies with strong non-European ownership to play a prominent role in discussions on Europe’s industrial strategy heightens suspicions about the Commission’s priorities.
Mr Vondra continued: “This is a critical moment for the European automotive sector, yet the Commission’s approach feels out of touch and incomplete. How can we expect meaningful solutions when the majority of the sector—particularly SMEs and suppliers—is left out of the conversation?
“Europe’s future depends on serious leadership, not on meetings shaped by narrow interests and external influences.
“This is no time for half-measures or cosmetic fixes. The automotive sector is the backbone of Europe’s industrial strength and must not be treated as an afterthought.
“By sidelining key voices and inviting third-country interests to shape the debate, the Commission risks jeopardising Europe’s competitiveness and betraying its own industrial ambitions. President von der Leyen must act now to restore confidence, or this so-called dialogue will become nothing more than a missed opportunity at a time when Europe cannot afford to fail.”
Source – ECR Group