The European automotive industry meets President Ursula von der Leyen in Brussels today, Friday 12 September 2025, for the third Strategic Dialogue on the Future of the European Automotive Industry, against a backdrop of weak demand, elevated costs and intensifying global competition.
EU industry commissioner Stéphane Séjourné has described the sector as being “in mortal danger”, warning in April that “the future map of the global car industry” risks being drawn without Europe.
Launched in January, the Strategic Dialogue brings together manufacturers, suppliers, social partners and other stakeholders to chart a path that safeguards competitiveness while staying on course for climate neutrality. The Commission has linked the process to its Automotive Industrial Action Plan, unveiled on 30 January, which sets out measures to strengthen the sector’s resilience and support the shift to clean mobility. Today’s session is expected to take stock of implementation and to guide forthcoming initiatives, including a review of the CO₂ emission performance standards for cars and vans, a proposal on corporate fleets, and steps on regulatory simplification.
The stakes are large. The industry supports over 13 million jobs across the value chain and contributes about 7% of EU GDP. At the same time, it is navigating rapid technological change, supply-chain pressures and a volatile geopolitical landscape. Since January, the Commission has also convened working groups across the value chain, overseen by Commissioners Maroš Šefčovič, Wopke Hoekstra, Stéphane Séjourné, Henna Virkkunen, Iliana Ivanova Mînzatu and Apostolos Tzitzikostas, with the Council and European Parliament kept informed.
Ahead of the meeting, the European Automobile Manufacturers’ Association (ACEA) has distilled the sector’s main requests into five priorities.
Recalibrate the CO₂ path. ACEA argues that current CO₂ trajectories should be adjusted to remain aligned with climate goals while preserving competitiveness and supply-chain resilience. Carmakers point to a gap between investment and market conditions. Battery-electric cars accounted for 15.6% of new EU registrations in the first half of 2025, with hybrids at about 34.8%, indicating that mass-market electric adoption remains uneven. Industry representatives want interim milestones and timelines reviewed in light of infrastructure and cost constraints. The Commission’s planned review of car and van standards provides the framework for such discussion.
Strengthen enabling conditions. Manufacturers say zero-emission vehicles will only become the default choice when ownership costs, taxation and access rules clearly favour them, backed by reliable charging and refuelling networks and modernised grids. Vans illustrate the challenge: electrically-chargeable models held 9.5% of EU van registrations in the first half, and operators cite charging availability and electricity prices as barriers. ACEA seeks more consistent purchase incentives, lower charging tariffs and accelerated roll-out of public and depot charging—especially along heavy-duty corridors—supported by grid upgrades.
Safeguard technology neutrality. While battery-electric platforms are expected to dominate, ACEA maintains that multiple technologies are needed to cover varied use cases, including plug-in hybrids, hydrogen fuel cells and renewable-fuel internal combustion solutions. Market data show sustained growth for plug-in hybrids through mid-2025. The debate is active: campaign groups question the real-world emissions of some hybrid configurations, while industry emphasises the need for pragmatic transition pathways that keep consumer choice and industrial capacity intact.
Boost competitiveness and resilience. The Commission has prioritised a European batteries base, but ramp-up takes time. In the interim, the industry calls for diversified sourcing of batteries, semiconductors and critical raw materials via trade partnerships with reliable allies, streamlined EU rules and targeted support for innovation and skills. Von der Leyen has signalled a broader push to anchor future EV production in Europe, alongside measures to reinforce clean-tech value chains.
Tailor policies by vehicle segment. ACEA proposes separate policy “lanes” for passenger cars, vans and heavy-duty vehicles, reflecting different market dynamics and infrastructure needs. Heavy-duty manufacturers point to gaps in megawatt-scale charging, depot power connections and purchase incentives. They argue that the EU should not wait until 2027 to reassess heavy-duty CO₂ standards, calling for earlier monitoring and course correction to keep freight on a Paris-aligned trajectory.
Today’s dialogue will also examine Europe’s position in a shifting geopolitical context, including how to accelerate leadership in electric, autonomous and connected vehicles through deeper industrial collaboration. The Commission has flagged regulatory simplification, support for corporate-fleet electrification and measures to lower operating costs for zero-emission fleets as areas for further action. Building a competitive domestic batteries ecosystem remains a central objective.
What to watch. Outcomes will be judged against several markers: clarity on the timetable and scope of the CO₂ standards review for cars and vans; any decision to bring forward monitoring of heavy-duty targets; concrete measures on charging infrastructure and grid capacity; and steps to reduce total cost of ownership for zero-emission vehicles. Industry will also look for signals on trade and sourcing to underpin investment decisions across the supply chain. The Commission characterises the process as ongoing; manufacturers and suppliers are seeking decisions that translate quickly into enabling conditions across the single market.
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