Warning<\/b> of industrial losses<\/b> in the EU <\/b>as substantial environmental regulations<\/b>and electromobility<\/b> are putting pressure on the automotive industry<\/b>.<\/p>\n
At a time of intense upheaval for the global market<\/b>, the European industry automotive is facing an increasingly pressurised environment<\/b>, where the acceleration of electrification<\/b>, stringent CO\u2082 emissions regulations<\/b> and intensifying international competition from the US and Asia<\/b> are reshaping the terms of the game<\/b>. The European Automobile Manufacturers’ Association (ACEA) <\/b>warns that, without a more flexible and pragmatic industrial policy<\/b>, the EU risks seeing its manufacturing base<\/b> shrink, the reduction<\/i>of the <\/i>competitiveness of European manufacturers<\/b> and the gradual loss of critical jobs<\/b> in one of the most strategic sectors of its economy<\/b>.<\/p>\n
According to reported by Topspeed.gr<\/b>, the Director General of the European Automobile Manufacturers’ Association (ACEA), Sigrid de Vries<\/b>, in a particularly blunt intervention, “rings the bell” of danger<\/b> to the European Union<\/b>, warning that the current course of industrial and environmental policy may have serious side effects for the automotive sector. As it points out, an overly one-dimensional approach to electrification, combined with strict and suffocating emissions targets, creates an environment that puts pressure on the competitiveness of European manufacturers, threatens their profit margins and increases the risk of losing industrial power globally.<\/p>\nThe statement<\/h3>\n
At the recent European Forum for Manufacturing conference at the European Parliament on the proposed Industrial Accelerator Act (IAA), one message stood out: Europe urgently needs to regain its competitive edge. Without decisive action, the gap with global competitors will continue to widen, eroding the industrial backbone that built modern Europe.<\/p>\n
Nowhere is this shift more evident than in the automotive sector. Asia, led by China, now produces more than 60% of the world’s vehicles, while the EU’s share has fallen below 15%. Competitive pressure is increasing not only abroad but also on our own roads, with Chinese-made vehicles now accounting for 7% of EU sales, while European exports are falling back in key markets such as the United States and China.<\/p>\n
Electrification is further exacerbating this gap. As the global race towards zero-emission mobility accelerates, Europe risks being left behind by more agile and faster competitors.<\/p>\n
The answer is not to retreat, but to strengthen Europe’s own competitiveness. It must become the central pillar of industrial policy: ensuring access to affordable energy, securing critical raw materials, strengthening battery value chains, reducing bureaucratic complexity, speeding up licensing and strengthening export markets.<\/p>\n
This is why we support the IAA’s ambition to maintain value-added in Europe, reduce strategic dependencies and preserve Europe’s role as a major industrial power. Our industry operates more than 250 plants across the EU and supports over 13 million European jobs. Manufacturers are already investing billions to consolidate the transition in Europe. We want the IAA to succeed and be a real catalyst for industrial strength.<\/p>\n
But let’s be clear: mandatory “Made in Europe” rules alone will not achieve this. A successful IAA must reflect what the European automotive industry really is: a complex, globally interconnected industry already under intense pressure from shrinking markets, tariffs and demanding carbon targets.<\/p>\n
Introducing “Made in Europe” requirements without addressing the underlying competitiveness conditions may have the opposite effect to that intended, weakening rather than strengthening Europe’s industrial base and restricting the market rather than allowing it to grow.<\/p>\n
For the automotive sector, the best way to enhance competitiveness lies in CO\u2082 standards. Europe’s unilateral focus on pure electric vehicles (BEVs) risks putting it at odds with more technology-neutral approaches adopted in other major markets. This divergence may put European manufacturers at a disadvantage, limiting their profitability, investment capacity and long-term resilience.<\/p>\n
At the same time, electric vehicle adoption is progressing more slowly than expected, as factors outside manufacturers’ control – such as charging infrastructure, grid readiness and inconsistent incentives – continue to negatively impact demand. The result is a growing divergence between regulatory targets and market reality.<\/p>\n
Without course correction, manufacturers face billions in fines or are limited to difficult choices: cutting production, buying credit from competitors (essentially transferring capital to non-EU companies, as the 1.99 billion euros in funding to non-EU companies shows), or buying up the market. Tesla’s 2025 credit revenues), or large discounts on EVs, leading to lower profits and a drop in the future value of vehicles in the secondary market.<\/p>\n
None of these options boosts Europe’s competitiveness.<\/p>\n
The good news is that policy can evolve. The recent automotive package was a step in the right direction, but more is needed to close the gap between ambition and delivery. This includes urgent flexibilities for 2030, such as a broader smoothing regime and industrial perspective for plug-in hybrids; alignment of 2030 and 2035 targets for trucks; agreement on an unconditional 90% target for 2035 for passenger vehicles; workable offset mechanisms for advanced materials and renewable fuels; and a review clause in 2029 to keep the framework aligned with the market.<\/p>\n
The automotive industry is at the core of Europe’s industrial identity. Its ability to thrive in the new global environment will shape the continent’s economic and technological future. If Europe sets the right conditions for our industry to compete, it will respond and shape the next era of mobility, preserving the legacy that began 140 years ago here at home.<\/p>\n","protected":false},"excerpt":{"rendered":"
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