The battle for Europe’s automotive future: suppliers demand measures to safeguard EU manufacturing
in CLEPA, 26-09-2025
Europe’s automotive industry is facing a pivotal moment. Suppliers generate 75% of a vehicle’s value and support 1.7 million jobs, yet rising costs, fragmented regulation, and global competition are threatening Europe’s industrial base. CLEPA, the European association of automotive suppliers, has just published a new position paper highlighting urgent measures to protect EU value creation, jobs, and innovation while ensuring the continent remains a global leader in mobility.
“Europe is in a decisive battle for its industrial sovereignty,” said Benjamin Krieger, Secretary General at CLEPA. “Suppliers are committed to invest and innovate, but they cannot do so on an uneven playing field. Maintaining a competitive and resilient automotive ecosystem in the EU will require urgent, market-driven action by industry and targeted policy measures, to strengthen Europe’s attractiveness as a location for manufacturing, R&D and investment. This includes addressing key location factors such as electricity prices and regulatory burden, while also considering policies to ensure EU local content in vehicles to retain know-how and production capacity.”
The paper outlines key policy recommendations to protect jobs and the European automotive ecosystem: from technology openness and enabling conditions for e-mobility and alternative fuels, to local content policies, trade and investment strategies, and support for green and digital transitions. Without swift action, Europe risks losing critical manufacturing capacities and know-how, putting climate goals and competitiveness at stake.
European automotive suppliers call upon policymakers to:
- Persistently prioritise the adoption and implementation of measures to shore up EU competitiveness to relevel the playing field for automotive suppliers;
- Urgently adopt measures to safeguard industry and value-add in Europe against a distorted playing field and maintain critical EU capacities and know-how.
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