EU Automakers Urge Action on Green Transition
Mobility

EU Automakers Urge Action on Green Transition

Top executives from Europe’s leading vehicle manufacturers met yesterday in Brussels with European Commission President Ursula von der Leyen for a crucial meeting to discuss the future of the automotive industry.

The discussions centered on bolstering European automakers’ global competitiveness while accelerating the transition to zero-emission mobility. The meeting highlighted the shared urgency among manufacturers and suppliers, who are facing a confluence of challenges that are hindering progress toward sustainability targets.

Sustainability goals and market realities

The European Automobile Manufacturers’ Association (ACEA) members, representing 16 major European-based vehicle makers, voiced their commitment to the transition toward zero-emission mobility, emphasizing the necessity of a market- and demand-driven approach.

EU Automakers Urge Action on Green Transition
Source: Volkswagen

Ola Källenius, CEO of Mercedes-Benz and ACEA President, stressed that while the industry invests in the transition, the current European Green Deal needs a “reality check” to remove obstacles and provide necessary flexibilities.   

While the industry supports ambitious climate targets, they highlighted that these goals need to be supported by practical measures such as infrastructure development, achieving total cost of ownership (TCO) parity, and stimulating demand.

Christian Levin, CEO of Traton, Scania, and Chair of the Commercial Vehicle Board, noted the importance of a shared understanding between business and public policy. He emphasized that the Commission’s ambition to reduce bureaucracy and accelerate the green transition is crucial to securing European competitiveness.

International trade and economic impact

The European automotive industry is a significant economic force in the EU, employing 13.2 million people and contributing over 7.5 percent of the EU’s GDP. The sector generates €383.7 billion in tax revenue for European governments and boasts a €106.7 billion trade surplus. Moreover, the industry is a major investor in research and development, with €72.8 billion spent annually, accounting for 33 percent of the EU’s total R&D expenditure.

However, the industry’s competitiveness is under threat due to factors including a slower-than-expected market uptake of zero-emission vehicles and a lack of enabling conditions, suggesting that the ambitious sustainability goals may be negatively impacting international trade.

Policy and future actions

The automakers are advocating for a collaborative approach with policymakers. ACEA members are committed to engaging with relevant Commissioners on four thematic work strands to contribute to an upcoming Action Plan.

They also stressed the importance of including all manufacturers and suppliers with substantial industrial footprints in Europe and that the unique perspective of the heavy-duty segment should be represented in the process.

The meeting underscores a critical moment for the European automotive industry as it navigates the complexities of the green transition and international competitiveness. I

It is clear that while the industry supports sustainability goals, concrete policy support, infrastructure improvements, and demand-side incentives are required to ensure a successful and economically viable transformation.

EU Automakers Urge Action on Green Transition

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