**Brussels**: On March 5, the European Commission will unveil a strategic plan for the automotive sector. It aims to support clean, connected, and autonomous mobility amid concerns from industry leaders about the adequacy of measures proposed to address CO2 emissions and technological diversity.
The European Commission is set to unveil a strategic plan for the automotive sector on March 5, aimed at supporting the transition of the European automotive supply chain towards clean, connected, and autonomous mobility. This announcement comes as Europe navigates the complexities of the current geostrategic landscape, positioning itself to enhance its competitiveness and resilience in the automotive market.
The preliminary summary of the plan outlines five key pillars: innovation and digitalisation, clean mobility, supply chain competitiveness and resilience, skills development, and attention to social dimensions and equity within the sector. However, industry associations, particularly those from Italy such as Anfia—representing companies within the automotive supply chain—have expressed significant concerns about the preliminary document. President Roberto Vavassori remarked, “With great regret and surprise, we note the absence in the preliminary document circulated by the Commission of the measures deemed essential for our sector and the urgent and necessary interventions that we have been discussing with the European Commission for months.”
Critics, including Benjamin Krieger from the European Association of Automotive Suppliers (Clepa), have raised concerns that the action plan is overly focused on electrification, failing to adequately address crucial issues such as penalties for exceeding CO2 emission limits and technological neutrality. Krieger emphasised the need for “urgent support for innovation and a diversified technological approach,” advocating for the inclusion of Plug-In hybrid engines and hydrogen technologies within the framework.
The strategic plans also outline goals for advancing connected and autonomous vehicles, highlighting Europe’s ambition to reclaim leadership in software and artificial intelligence applications in automotive technology. A new “European Connected and Autonomous Vehicle Alliance” is to be established, which will aim to forge cooperative partnerships among European automotive stakeholders. This initiative will seek to develop uniform architectural elements, as well as shared hardware and software standards, facilitating road tests for both private and public vehicles.
In parallel, the Commission is looking to incentivise electric vehicle adoption through enhanced funding options for member states, aiming to improve programmes for electric vehicle incentives across the EU. There are also plans to extend exemptions from road tolls for zero-emission heavy vehicles beyond December 31, 2025, along with the establishment of the European Clean Transport Corridor initiative. This initiative is intended to accelerate the rollout of charging infrastructure for heavy vehicles, addressing logistical needs along major transport corridors.
Additionally, the Commission will launch a “Battery Booster” package to strengthen the European battery manufacturing sector, focusing on increasing local production capacity in battery cells and components. Support will be provided to manufacturers where EU enterprises establish partnerships with foreign operators to share expertise and enhance value in the battery supply chain.
Concerns about employment transitions arising from these changes have led to the proposed establishment of an “European Observatory” aimed at gathering data on job trends and skill gaps within the automotive industry. This initiative is expected to facilitate more effective interventions for workers displaced by industry transitions. Furthermore, the plan notes potential amendments to the European Globalization Adjustment Fund to expedite support for workers affected by such changes.
The Commission also intends to address industrial policies to ensure fairness and resilience in the automotive sector, focusing on ensuring that foreign investments complement the long-term competitiveness and technological edge of EU industries while promoting quality job creation. There is a commitment to provide a sufficient timeframe for industry stakeholders to respond to new legislative proposals affecting motor vehicle regulations, aimed at fostering consistency and regulatory clarity within the automotive sector.
The outline of the strategic plan has generated mixed reactions, with industry representatives calling for clearer commitments and actions that truly reflect the needs of the automotive sector. The forthcoming presentation on March 5 is highly anticipated as stakeholders seek clarity on the European Commission’s direction for the future of the automotive industry in a rapidly evolving technological landscape.
Source: Noah Wire Services
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