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The second meeting of the Strategic Dialogue on the Future of the European Automotive Industry took place in the beginning of March 2025 in a “good, intense and productive discussion”, noted the Commission President. However, she added “it was clear now that it is time for action on a number of priorities”.
Visualizing and discussing the priorities
= The first topic of discussions was about innovation: it was dominant underlining all EU measures aimed to secure the future of the car industry in Europe. For example, the Commission has agreed on the need for “a big push in software and hardware for autonomous driving”.
The global competition is fierce, so the industry has to act fast and comprehensive, by “scaling on this topic matters, more than ever before”. That is why the industry participants have agreed to set up and support an industry alliance: i.e. companies will be able to pool resources; they will develop shared software, chips and autonomous driving technology, etc.
From the Commission’s side, it will refine the testing and deployment rules, as well also help launch large-scale pilots for autonomous driving.
The ultimate goal, noted the President, is very simple: “we have to get autonomous vehicles on Europe’s roads faster”.
= The second topic under discussion was the transition towards clean mobility as there is a clear demand for more flexibility on CO2 targets with additional balance’s component. There are two points in the latter: 1. the sector needs predictability and fairness for “first movers” (those who did their homework successfully; that mean the EU “have to stick to the agreed targets”. 2. The Commission has “to listen to the voices of the stakeholders that ask for more pragmatism in these difficult times, and for technology neutrality, specifically when it comes to the 2025 targets and related penalties in case of non-compliance” added the President.
Address these issues in a balanced manner, the Commission will propose a “focused amendment” to the CO2 Standards Regulation in March: i.e. instead of annual compliance, companies will get three years of “breathing space for industry” (reflecting the principle of banking and borrowing). The targets stay the same generally (they have to be fulfilled), but the “breathing space for industry” will provide for more clarity without changing the agreed targets.
Such a targeted amendment could be agreed swiftly by the European Parliament and the Council, and the EU institutions and the industry have to agree quickly.
At the same time, the Commission will be ready to speed up work on the 2035 review, with full technology neutrality as a core principle.
= Third point is sector’s competitiveness; i.e. the European car supply chains have to be more robust and more resilient, especially when it comes to batteries as a challenging issue. While the EU-wide batteries’ production is in the process of scaling up, it is evident that imported batteries are cheaper; however, the EVs cannot become more expensive but the sector, at the same time “cannot afford to create new dependencies”, noted the President and added that consequently “the EU would explore direct support for EU battery producers”.
The EU will gradually introduce European content requirements for battery cells and components with, of course, keeping cutting red tape and continue regulatory simplification.
As the priority actions: the Commission will present a detailed action plan this March; but the dialogue with the automotive industry will go and the Commission will keeps engaging the College and the CEO at the industry’s level before the summer break.
Source: https://ec.europa.eu/commission/presscorner/detail/en/statement_25_656