Europe to start strategic talks on future of the automotive industry

The European Commission is to start talks on the future of the automotive industry in the region in January.

The Strategic Dialogue on the Future of the Automotive Industry in Europe aims to ‘swiftly’ propose and implement measures the sector urgently needs.

This comes as the industry faces deep and disruptive transition, says the Commission. Volkswagen is looking to close three plants in Germany, Stellantis has ousted its CEO in a dispute over strategy and Honda and Nissan are reported to be in discussion on a merger that will impact the Renault group.

The future of the industry is also key to European semiconductor suppliers, particularly Infineon Technologies, NXP Semiconductor and ST Microelectronics, as well as the planned ESMC European fab joint venture with TSMC of Taiwan which at 28nm is aimed squarely at producing automotive chips.

This comes ahead of the second Trump presidency that is likely to see tariffs on European cars shipped to the US that will hit the luxury brands of Porche, Audi, BMW and Mercedes.  

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The talks will look at boosting data-driven innovation and digitalisation, based on forward-looking technologies such as AI and autonomous driving.

While it will also look at supporting the sector’s decarbonisation, in an open technological approach, given its role in achieving Europe’s ambitious climate goals, but will also look to simplify and modernize the regulatory framework. This is likely to extend net zero targets for electric vehicles.

“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,” said Commission President, Ursula von der Leyen.

The talks on the future of the automotive industry will also address jobs, skills, and other social elements in the sector as well as ways of increasing demand, strengthening the financial resources of the sector and its resilience and value chain in an increasingly competitive international environment. This implies more grants, perhaps similar to the EU Chips Act.

The Strategic Dialogue includes European automotive companies, infrastructure providers, trade unions and business associations, as well as parts of the automotive value chain and other stakeholders.

The formal launch by von der Leyen will be followed by a series of thematic meetings to produce a set of recommendations that help build a strategy for the sector to manage the various challenges and where needed adapt the EU regulatory framework.

“Each sector has unique needs, and it is our responsibility to tailor solutions that are both clean and competitive. We need to support this industry in the deep and disruptive transition ahead. And we must ensure that the future of cars remains firmly rooted in Europe. This is why I have called for a Strategic Dialogue on the Future of the European Car Industry. We will launch this Dialogue already in January, to shape together our shared future,” she said.

ec.europa.eu