Strategic Dialogue on the Future of the European Automotive Industry Launched in Brussels
31 January 09:42
The day before, European Commission President Ursula von der Leyen brought together key leaders of the European automotive industry, trade union representatives and other stakeholders to discuss how to help EU automakers electrify their fleets and compete with more advanced Chinese and American competitors. This was reported by the European Commission, according to
According to Reuters, the European automotive industry has been severely affected by plant closures and job cuts, including the loss of 54,000 jobs last year, and is struggling with the threat of US trade duties and dependence on China, particularly in the supply of some components.

But most of all, European automakers are now focusing on getting the EU to cancel potential fines for those that fail to meet CO2 emissions targets this year.
Renault CEO Luca de Meo has estimated that these costs could reach 15 billion euros for European manufacturers. Moreover, to avoid this, the share of electric vehicles in the market should increase by more than 20%. Although last year it fell to 13.6% after Germany suddenly canceled subsidies for the purchase of electric vehicles.
According to industry experts, European automakers may try to achieve the goals of increasing the production of electric vehicles by reducing the production of gasoline or diesel cars or buying carbon credits from the American manufacturer Tesla or Chinese competitors.

“It turns out that automakers will buy green credits from the country that pollutes the most in the world and finance those Chinese electric car manufacturers on whom the EU has just imposed duties,” says Gianluca Di Loreto, a partner at Bain & Company.
The heads of automotive centers in Germany, Italy, and the Czech Republic called on Brussels to cancel the penalties or extend them for a longer period. The European Commission has hinted at some flexibility, but has remained steadfast so far.
However, at the meeting in Brussels, the European Commission recognized that there is an urgent need to take measures that will protect the European automotive industry and ensure its continued prosperity in the European Union.
What was agreed upon at the meeting in Brussels
Following the meeting with the automakers, President Ursula von der Leyen instructed Commissioner for Transport and Tourism Apostolos Tsitsikostas to submit an action plan by March 5.
The plan should address a wide range of issues relevant to the sector, such as ensuring access to opportunities and resources, promoting technological innovation and the development of next-generation vehicles, and creating a pragmatic and predictable regulatory framework.
As you know, European automakers are currently considering how to avoid fines for violating carbon standards.
EU rules require car manufacturers to reduce CO2 emissions, and those that find it difficult to comply with carbon standards face a choice: pay billions of euros in fines, increase sales of electric vehicles by lowering prices, or buy carbon credits from competitors that are less polluting.

Many EU automakers are choosing the option of “carbon alliances”: they are forming alliances with electric vehicle manufacturers and hope that this will help increase the share of such vehicles in their sales, as well as allow them to average greenhouse gas emissions in their joint fleets with other companies. European automakers also hope that the official Brussels will hear them and offer a solution that will take into account the new rules and circumstances and will not favor Chinese automakers, whose share of the European market is growing rapidly.