Europe’s automotive industry is facing a structural crisis. Production has fallen from 16 million vehicles in 2018 to 11.4 million in 2024, exports are down 13.2% since 2019, and new car registrations have dropped by 2.4 million. These trends risk eroding industrial capacity and jobs.

As the EU prepares to present its revised CO₂ emissions regulations and the 2025 Automotive Package, industriAll Europe has published a new statement setting out the serious challenges facing the sector and the millions of workers whose livelihoods depend on it.

We call for decisive and urgent action through a robust industrial strategy backed by measures to restore domestic demand, including fleet-renewal schemes, social leasing, targeted tax incentives and expanded public procurement.

Europe Must Defend Its Industrial Sovereignty
In the context of growing trade tensions and China’s industrial overcapacity, we call for local content requirements, effective trade-defence instruments and conditions on public funding that safeguard employment and maintain production in Europe. We urge legislation to secure a substantial share of automotive and supply-chain manufacturing, notably in strategic technologies like batteries and semiconductors, remains within the EU.

Decarbonisation Must Be Pragmatic and Just
We reaffirm our commitment to the EU’s climate objectives. Hence, the need for urgent corrective action to bridge critical gaps in European battery supply, charging infrastructure and grid capacity. Job guarantees, retraining programs, certainty of the enforcement of collective bargaining agreements, and concrete investments in European plants producing zero-emission vehicles are essential. We are open to targeted flexibility in the regulatory framework, but under strict conditions. It must be tied to concrete investments in European plants producing zero-emission vehicles.

Technology Neutrality Must Serve Climate Neutrality
Innovation must be welcomed, but not at the expense of clarity or stability. We support technological neutrality, provided it does not dilute climate objectives or delay industrial transformation. Plug-in hybrids and range extenders are important transitional technologies that help secure value creation and employment while introducing cautious customers to electromobility. Low-carbon fuels may play a limited role - notably for the existing fleet - if they are demonstrably produced sustainably, but they must not be used to sell false promises to workers.

A Call for Coordinated Action
We call on EU institutions, Member States and industry to work together on a strong, worker-centred industrial strategy capable of stabilising the sector, protecting workers and leading the global transition to clean mobility. The future of Europe’s automotive sector - and the dignity of its workers - depends on political courage and collective action.