With 13 million jobs, 255 factories and 15 million vehicles produced each year, accounting for as much as 7% of the European Union's (EU) gross domestic product (GDP), it is no exaggeration to say that the automotive industry is the heart of European industry. Europe's iconic car brands, created with great passion and remarkable inventiveness by outstanding and far-sighted engineers, have built up unique expertise that is recognised the world over. Unfortunately, this beating heart of ours is now struggling with difficulties, gradually weakened by various economic factors and by mistaken policy steps whose consequences have held the industry back. Germany, France, Italy and Belgium have recently announced factory closures and the possible redundancy of thousands of workers. The slowdown of Europe's once so stable leading companies has sent shockwaves across the whole continent. This harsh situation affects not only jobs, but also our independence. We in the EPP Group in the European Parliament will not stand aside, and we remain convinced that the future of mobility must be built in Europe, not in China.
There is a great deal to be done to move closer to that goal. It has to be said that Europe has already begun to respond, for example by raising tariffs on Chinese electric vehicles. But that will not be enough. The first significant challenge is to give businesses freedom to act. At present, instead of developing, entrepreneurs are pouring their energy into implementing regulations and into efforts to obtain the subsidies needed to comply with them. That is not sustainable — the industry itself, its engineers and its scientists must be allowed to decide how the targets set are to be met. Of course, differing approaches and the fragmentation of legislation across EU countries will not help here, yet we can align and simplify the rules and get out of a situation in which we are constraining the very cornerstone of our own economy — businesses. In this respect, the new European Commission must achieve tangible progress in creating a genuine and effective single market for both goods and capital.
Vehicle manufacturing is currently under threat, while the electric vehicle sector faces a serious crisis of demand, so concrete steps must be taken without delay. This includes doing everything possible to avert the penalties expected to be imposed on European car manufacturers this year and, if those penalties are unavoidable, channelling them back into support for the European automotive industry. To restore Europe's competitiveness, we need a concrete European plan that fully supports the automotive industry and the jobs it creates.
We must also be objective about which parts of the plan are not working. The shift to electric transport envisaged in the "Fit for 55" package (Fit for 55) is a step in the right direction. However, the target of ending sales of internal combustion engine cars by 2035 now appears wholly unrealistic. During the election campaign, the EPP promised to address this situation, and Commission President Ursula von der Leyen (Ursula von der Leyen) undertook to review the legislation. Given the critical state of the automotive industry, this issue must not be left unexamined. The forthcoming ban on internal combustion engines from 2035 must be amended in order to achieve technological neutrality. The history of European innovation shows that it is precisely technological neutrality that has always underpinned Europe's mobility success story. Combining different technologies would allow climate targets to be met flexibly, without holding back innovation or damaging the automotive industry. Inese Vaidere, an EPP Group MEP and member of the European Parliament's Committee on Industry, Research and Energy, also stresses: "Technological neutrality matters in Latvia too. We must be flexible, and we can also revise the targets we have set if need be. In Latvia, too, we will most likely still lack both the necessary infrastructure and the purchasing power for every new car on the road to be 100% electric."
Finally, the aim of the "green course" or "green deal" is to create jobs in Europe, not in China. By the first half of 2024, Chinese brands accounted for more than 10% of new electric vehicle sales in the EU — a startling increase from almost zero per cent in 2019. China controls essential raw materials for battery production, while battery manufacturing in Europe lags behind. Have we reduced our dependence on Russian gas only to become dependent on Chinese batteries? We need to develop a new raw materials and resources strategy, because we cannot afford to lose another "solar panel war" with China. Electric vehicle infrastructure must likewise be developed more quickly, by simplifying procedures and offering financial incentives. That would help to build enough charging stations sooner, including for households and heavy goods vehicles
If the previous European Commission's mandate was about the "green course", the next one is about competitiveness. The EPP Group has therefore proposed cooperation at the highest level with the leaders of the European automotive industry. Von der Leyen has also said that she will organise a strategic dialogue on the future of the European automotive industry.
Manfred Weber (Germany), Member of the European Parliament and Chairman of the EPP Group
Jens Gieseke (Germany), Member of the European Parliament, EPP Group spokesman on transport, responsible for the EPP Group's automotive industry strategy
Inese Vaidere (Latvia), Member of the European Parliament
