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Auto Dialogue: Von der Leyen wants results in a few weeks
EU Commission President Ursula von der Leyen plans to present an action plan to support the automotive industry in a few weeks. She has tasked EU Transport Commissioner Apostolos Tzitzikostas with presenting the plan on March 5, the Brussels authority announced. The paper is to record the results of a dialogue that has now started in Brussels. The Commission is exchanging views with car manufacturers, union representatives, environmental organizations, and suppliers, among others.
The European automotive industry is under pressure. It faces increasing competition from China, but U.S. automaker Tesla is also contesting European companies' shares in the e-car market. This industry is of vital importance for the economy in the EU and especially in the car country Germany.
According to the Commission, around 13 million people in Europe are directly or indirectly employed by it. In addition to the jobs at car manufacturers like VW, Mercedes, or BMW and suppliers like Bosch, the numbers also include four million indirect jobs, such as in trade or workshops.
Dispute over Climate Penalties and Combustion Engine Phase-Out
The question of how to support the automotive industry involves several aspects. One area of debate is how to adjust looming fines for car manufacturers, which they will likely have to pay for failing to meet climate targets.
The German Association of the Automotive Industry, like other economic representatives, is pushing vehemently to avoid the fines so that more money can be available for investments in e-mobility. Additionally, the question remains whether the combustion engine phase-out planned for 2035 will stay in place. Environmentalists fear a weakening of climate protection regulations on these issues. Other possibilities being discussed include tax advantages, purchase premiums, or EU-wide joint projects funded with public money.
William Todts, Executive Director of the environmental organization T&E and a participant in the dialogue, said after the meeting that he was very disappointed.
“What we saw today was a well-coordinated attack by the automotive industry on the CO2 standards for cars.”
The auto industry also wants to change the EU requirements for 2035, which include the combustion engine phase-out.
Confrontation over Tariffs
However, the fact that the interests of the European industry do not always align is evident in the case of additional tariffs on electric cars from China. While the German industry vehemently opposes them, France has expressed a generally positive stance in the past about punitive measures against China's electric cars. Shortly before the start of the new dialogue, German car manufacturers like BMW and Mercedes, among others, announced their intention to take legal action against the measure.
When asked about the legal dispute, EU Commission President von der Leyen said that the situation in the automotive industry is complex. In addition to Chinese vehicles being sold below production costs, topics such as electrification, infrastructure, and qualifications are complicated areas.
```Content automatically translated."When you listen to the various car manufacturers across Europe, you have very different views on it," said von der Leyen.
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