Europe's Automotive Sector at Crossroads: Jobs at Risk as EU Reassesses CO2 Regulation
Europe faces a critical juncture in its automotive sector transformation, with the European Commission's Strategic Dialogue seen as the last opportunity to steer the course. Tens of thousands of jobs are at risk due to factory closures and stagnating investments, prompting several member states to debate revisions to the combustion engine phase-out. The industry, represented by CLEPA, urges flexibility and market-oriented approaches in the upcoming CO2 revision.
The European automotive sector stands at a pivotal moment. The existing CO2 regulation for light-duty vehicles, which aims to phase out new combustion engines, is being reassessed due to the rapidly evolving context. The industry, particularly in key countries like Germany, is under severe pressure from rising costs, stringent EU climate regulations, and international competition. Industry leaders like Bosch and Volkswagen have announced significant job cuts and production pauses, highlighting the need for a strategic dialogue with the EU.
CLEPA, the European association of automotive suppliers, calls for flexibility and industrial perspectives in the upcoming CO2 revision. It advocates for a market-oriented approach that recognizes the technical challenges in transitioning to clean mobility. The association urges the Commission to move from discussion to implementation, taking into account the current realities of the industry. Competitiveness in the sector is under intense pressure due to global trade disruptions, resource constraints, high energy costs, rising labor expenses, and a complex regulatory framework. While battery-electric vehicles will play a leading role in the future, the transition must also include plug-in hybrids, more efficient combustion engines, range extenders, hydrogen solutions, and low-carbon fuels.
The European automotive industry's future hangs in the balance, with tens of thousands of jobs at stake. The upcoming CO2 revision presents an opportunity to secure a competitive and sustainable future for the sector. Close cooperation with EU institutions is crucial to navigate the challenges and ensure a successful transition to clean mobility.
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