Source: European Parliament
The automotive industry is a core engine of European prosperity. The sector accounts for EUR 1 trillion in gross domestic product, a third of private research and development investment in the EU and it provides direct and indirect employment to 13 million Europeans.
However, the European automotive sector is at a critical turning point, challenged by rapid technological changes and increasing competition.
Against this background, the President of the Commission in January 2025 launched a Strategic Dialogue on the Future of the European Automotive Industry[1], a collaborative and inclusive process designed to tackle the sector’s most pressing challenges. On 5 March 2025, the Commission put forward an Action Plan[2], which builds on the Strategic Dialogue.
The action plan sets out concrete measures to help secure global competitiveness of the European automotive industry and maintain a strong European production base.
It also includes measures to ensure better support for workers affected by the transition of the sector. In particular, the Commission has proposed to extend the scope of the European Globalisation Adjustment Fund to also support workers threatened by imminent job displacement.
Additionally, the Commission is working with social partners and Member States to increase European Social Fund Plus funding for the automotive sector, supporting workers who want to reskill and look for new job opportunities.
The Commission is using the mid-term review to incentivise Member States to reprogramme more funding to these ends. Moreover, the Commission will work with social partners to prepare a Quality Jobs Roadmap to be published towards the end of 2025.