EU to host auto sector talks to tackle waning competitiveness
The EU's automotive industry, a significant contributor to the bloc's economy, is facing unprecedented challenges. Rising competition from Chinese rivals, potential US tariffs, and stringent environmental regulations are threatening the very survival of European carmakers.
"We cannot afford to lose our competitive edge in the automotive sector," said Commission President von der Leyen. "That's why we're bringing all stakeholders together to find solutions and ensure the long-term viability of this critical industry."
The meeting will focus on streamlining regulation, reducing costs, and improving access to essential inputs such as raw materials and energy. The EU also aims to guarantee a level international playing field, promoting fair trade practices and preventing unfair competition from non-EU countries.
The stakes are high, with the automotive industry employing over 13 million people and accounting for around 7% of the EU's GDP. Failure to address the sector's challenges could have far-reaching consequences for the EU economy.
European automakers, including Volkswagen, BMW, and Renault, have been struggling to keep pace with changing consumer demands, technological disruption, and increasingly stringent environmental regulations.
"The EU must act quickly to support its automotive industry," said Eric-Mark Huitema, Director General of the European Automobile Manufacturers Association (ACEA). "We need a comprehensive plan that addresses our competitiveness challenges and ensures a level playing field with our global rivals."
The outcome of the January 30 talks will be closely watched by industry stakeholders, policymakers, and consumers alike. As the EU struggles to maintain its competitive edge in the automotive sector, one thing is clear: the future of European carmaking hangs in the balance.
https://www.reuters.com/business/autos-transportation/eu-host-auto-sector-talks-tackle-waning-competitiveness-2025-01-20/