Von der Leyen, emergency meeting to save the European car industry

Ursula von der Leyen, the president of the European Commission, and representatives of the major manufacturers will seek, on Friday, September 12, solutions for a sector that, in the absence of concrete measures, risks being overtaken by Asian rivals and losing the battle of electric mobility for good, according to Euronews. Although the European Union has already launched an action plan with billions of euros invested in the production and development of batteries - including the Battery Booster program of 1.8 billion euros and one billion allocated to research through Horizon Europe -, the reality of the market shows that these initiatives have not changed the general trend. The meeting in Brussels is part of the "Strategic Dialogue on the Future of the Automotive Industry”, which has reached its third and final session this year.

The European automotive industry, a pillar of competitiveness and innovation, is today "in danger of its survival”, as Stephane Sejourne, president of the Renew Europe political group, warned in the spring, underlining that there is a risk that the future of this industry will be written without Europe's participation. The decline in sales, the explosive increase in energy costs, regulatory pressures and global competition are putting enormous pressure on manufacturers and demanding rapid responses at the highest political level.

That is why representatives of the automotive industry are calling for a reduction in energy costs, direct subsidies for the purchase of electric vehicles, tax incentives and, above all, a fair distribution of charging infrastructure across the Union.

Currently, according to the cited source, only 15% of the European market belongs to electric vehicles, and consumer reluctance is fueled by the lack of infrastructure: of the approximately 880,000 existing public charging points, 75% are located in the Netherlands, France and Germany. The European Automobile Manufacturers Association (ACEA) estimates that 8.8 million charging stations will be needed by 2030, which implies the installation of 1.5 million annually, i.e. ten times more than the current pace.

Against this background, representatives of the automotive industry point out that the CO2 emission reduction targets for 2030 and 2035 are difficult to achieve. The leaders of ACEA and CLEPA (European Automobile Suppliers Association) have called in a letter to Ursula von der Leyen for more flexibility and recognition of geopolitical and industrial realities, warning that a total ban on combustion engines without realistic alternatives could be fatal for the sector.

Meanwhile, the future of electric mobility is marked by the advance of China, which controls global battery production and benefits from low costs. Chinese cars are becoming increasingly competitive, and their domestic market, where more than 32 million vehicles were sold last year (half of which are electric), far exceeds the European Union and the United States. Moreover, at the IAA Mobility event in Munich - one of the largest car shows in the world - the number of participating Chinese companies increased by 40%, a sign of the expansion force that Europe must face.

Pressure is also coming from the United States, where the new tariffs imposed by Donald Trump on European cars add an additional burden on already affected manufacturers. The report on the competitiveness of the Union, signed by Mario Draghi, highlights the urgent need for adaptation and industrial resilience to counter Chinese dominance. At the same time, voices such as that of the German economist Ferdinand Dudenhoffer argue, according to the cited source, that isolating China would be a strategic mistake and that Europe needs political and economic cooperation to protect its interests.

What is at stake is not only the future of the European car industry, but the very economic stability of the Union. The sector directly and indirectly supports over 13 million jobs, i.e. more than 6% of the European workforce, and contributes almost a trillion euros to European GDP. The cited source specifies that in Germany, Sweden and several Eastern European countries, the car industry exceeds 10% of total manufacturing jobs, and the loss of tens of thousands of jobs last year in Germany alone shows how deep the impact is.

Historical examples confirm the risk: Britain, once a colossus of the car industry, has now come to retain only one 100% British brand, Morgan, a handcrafted sports car manufacturer. In Europe, the scenario of a similar decline is becoming increasingly plausible unless courageous decisions are taken and adapted to reality.

The Brussels meeting could mark the beginning of a new strategy or the end of an era of European automotive dominance. If political and industrial leaders manage to find a balance between environmental ambition and economic needs, the European car industry must be saved. If not, losing this global race will not only mean the closure of factories, but also a devastating blow to the European Union economy, the future of electric mobility and the social stability of millions of families.