In a letter addressed to the President of the European Commission, Ursula von der Leyen, ACEA, together with seven other signatories from the automotive value chain, including trade union and employer representatives, have made an urgent call to stimulate the European auto industry’s transformation and enhance competitiveness.

In the letter, the signatories called on the European Commission to prioritise six key actions before the end of the current mandate in 2024: develop a robust industrial strategy; scale up a European zero-emission market and battery value chain; ensure a stable and coherent regulatory environment for the sector; enhance the skills agenda and Just Transition framework; improve transport affordability; and ensure a global level playing field.

The automotive industry representatives explain that geopolitical challenges have put additional pressure on the decarbonisation of transport. Failure to act now within the current mandate risks further delays that will inevitably undermine the European automotive industry’s transformation and competitiveness. It will also put at risk employment in an industry that generates more than 13 million jobs in the EU.

They also state that China provides a telling example of a targeted industrial strategy supporting a globally competitive, domestic auto industry in electromobility. The US Inflation Reduction Act also shows that a robust industrial policy framework can trigger hundreds of billions in private investment. 

"The EU must develop a robust industrial strategy that guarantees a level playing field (outside and within the EU), provides a stable investment environment and fosters a competitive automotive industry and industry manufacturing in Europe," the signatories said.

Finally, they point out that diversification of the supply of raw materials should be a central pillar of the EU’s trade strategy, including the ratification of existing trade agreements and the negotiation of raw material partnerships. The signatories of this open letter recognise the critical situation for the European automotive industry and and expect the European Commission to take these challenges into account in order to jointly ensure the transformation of the European automotive industry and European welfare.