The European Union is going to open up a strategic dialogue on the future of the automotive industry on January in order to set up joint priorities and work out the most urgent needs of a crucial industrial sector for the bloc.
European Commission president Ursula von der Leyen unveiled the idea during a speech in the plenary session of the European Parliament on November 27. She underlined the importance of the sector in the EU, saying that “is crucial for Europe’s prosperity. It drives innovation, supports millions of jobs, and is the largest private investor in research and development,” adding that “we need to support this industry in the deep and disruptive transition ahead. And we must ensure that the future of cars remains firmly rooted in Europe.”
In 2023, 45.4% of global research & development investments came from the EU, by far the highest in the world. The sector is in a state of flux, trying to transition to electric power systems and abandoning fuel-powered vehicles. European manufactures are facing intense competition from China, with electric vehicle producers recently hit with higher tariffs for what the EU considered unfair competition.
The EU created the Strategic Dialogue platform as a way for stakeholders in the industry and policy-makers to dialogue on key issues in a given sector. For the automotive sector, local companies, as well as providers of infrastructure services, trade unions, business associations and parts of the automotive value chain will convene in a series of meetings that will shape up recommendations to help the EU build a strategy for the sector.
The automotive strategic dialogue will focus on data-driven innovation, digitalisation, decarbonisation and its impact on the job market and on the skills requested for the sector. It will also look at ways to improve the financial resources and its resilience against international competition.
