The European Commission has launched a series of initiatives aimed at strengthening Europe’s leadership in the automotive sector. President Ursula von der Leyen, head of the European Commission, chaired the third Strategic Dialogue on the Future of the European Automotive Industry in Brussels, bringing together representatives from the European automotive sector, social partners, and other key stakeholders. The meeting reaffirmed the urgent need to implement the Automotive Action Plan, emphasizing that as technology transforms mobility and geopolitics reshapes global competition, “there can be no business as usual.”

Key discussions led by President von der Leyen focused on securing Europe’s leadership in electric vehicles, accelerating innovation in autonomous and connected vehicles, and strengthening European battery manufacturing. The European Commission announced measures to protect companies against unfair competition, improve access to critical raw materials, and support workers through reskilling.

"The European automotive industry is at a pivotal moment, and we acknowledge the challenges it faces. That is why we are acting swiftly to address them. The fundamental question we need to answer together is what we still miss to unleash the innovative power of our companies and ensure a robust and sustainable automotive sector. Today marks the beginning of a dialogue that will help us navigate the changes ahead. The outcome of this dialogue will be a comprehensive Action Plan, which we will present on March 5th. This Action Plan will chart a clear course to ensure our industry can thrive in Europe and compete successfully on a global stage,"  von der Leyen, explained.

In a significant step for innovation, Commissioners Ekaterina Zaharieva and Apostolos Tzitzikostas signed a Memorandum of Understanding (MoU) with stakeholders to accelerate automotive research and innovation at the EU level. The MoU unites the 2Zero Partnership (zero-emission road transport), the CCAM Partnership (Connected, Cooperative, and Automated Mobility), and the BATT4EU Partnership (battery value chain innovation) with industry representatives, aiming to address the sector’s strategic needs and position Europe as a leader in sustainable and smart mobility by 2035.

The next two years are seen as decisive for technological leadership in connected and autonomous vehicles. The newly launched European Connected and Autonomous Vehicles Alliance (ECAVA) will serve as a forum to coordinate investment and set a shared industry agenda. Executive Vice-President Henna Virkkunen will convene the first meeting in late October.

"The car of the future will be a supercomputer on wheels, powered by electrification and AI. The European Connected and Autonomous Vehicle Alliance, launched by President von der Leyen today, will bring together key stakeholders across the whole automotive value chain. Over the next months, we will intensify our efforts to foster EU-wide cooperation on software-defined vehicles, hardware computing, AI models and the development, piloting and testing and regulatory approval of autonomous driving solutions. I am looking forward to kicking off our work at the end of October," Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said.

The dialogue also provided an opportunity for stakeholders to give input on upcoming Commission initiatives, including the review of CO2 emission standards for cars and vans, proposals on corporate fleets, and regulatory simplification for passenger cars, light commercial vehicles, and heavy-duty vehicles. Participants assessed progress on the Action Plan launched in March 2025 and reviewed steps toward a thriving European automotive industry and a successful clean mobility transition.

Industry Reaction

ACEA welcomed the clear focus of the Strategic Dialogue on structural challenges facing the sector. “We agree with the Commission President that bold and fast action is required,” said Ola Källenius, ACEA President and CEO of Mercedes-Benz. “No one has more at stake in the success of zero-emission mobility than Europe’s automakers. A thriving Europe needs us, and we need a thriving Europe.”

Industry leaders stressed the need for immediate action to make CO2 policy frameworks for cars and vans fit for reality. Electrification is expected to dominate passenger cars, light commercial vehicles, and heavy-duty vehicles, but enabling conditions such as affordable energy, charging infrastructure, and incentives remain essential.

Christian Levin, CEO of Traton Group and Scania, highlighted challenges in trucks and buses, noting that vehicles are ready but infrastructure and support lag behind. Industry representatives argued that CO2 standards for heavy-duty vehicles cannot wait until 2027 and require urgent monitoring and action.