Source: European Parliament
The Commission is aware and concerned about the situation in the automotive industry. Challenges stem, among others, from shifting mobility patterns, increasing competition and global supply chain risks, new technologies and a volatile geopolitical context.
Underscoring the commitment to safeguarding the future of this vital sector, the Commission President launched in January 2025 the Strategic Dialogue on the Future of the European Automotive Industry[1], which brings together industry, social partners and civil society representatives[2].
The objective of the dialogue is to contribute to policy design, including in the skills and social field, to address the challenges facing the sector.
This has fed into the Industrial Action Plan for the European automotive sector, published on 5 March 2025. The action plan addresses a broad range of issues to maintain a strong European production base and support a thriving car industry that creates jobs, drives growth and protects the environment.
While the Commission cannot interfere in company decisions on restructuring, several Directives[3] stipulate minimum requirements on workers’ rights and involvement. This is supported by the Quality Framework for Restructuring and Anticipation of Change[4].
The main instruments to support workers affected are the European Social Fund (ESF+), which helps in an anticipative way, including by supporting up- and reskilling[5], and the European Globalisation Adjustment Fund for Displaced Workers (EGF)[6], activated by major restructuring events.
The action plan proposes an extension to the EGF to support companies in restructuring processes to protect employees at risk of unemployment. One in five workers offered EGF support so far belongs to the car industry.
- [1] https://transport.ec.europa.eu/news-events/dialogues/dialogue-future-automotive-industry_en
- [2] A list of participating organisations, including representatives of the automotive industry and infrastructure providers, is available here: https://ec.europa.eu/commission/presscorner/api/files/attachment/880307/List%20of%20participating%20organisations.pdf
- [3] Directive 98/59/EC on collective redundancies, Directive 2001/23/EC on transfer of undertakings, Directive 2002/14/EC establishing general framework for informing and consulting employees and Directive 2009/38/EC on European Works Councils.
- [4] COM/2013/0882 final — 13.12.2013.
- [5] Upskilling, reskilling, attracting talent, ensuring the right skills at the right place, are among the priorities supported by the ESF+. The funding is available, with a significant budget for skills development, the administration is in place, implementation of the 2021-2027 period is in full swing.
- [6] See Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013, OJ L 153, 3.5.2021, p. 48-70 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=uriserv:OJ.L_.2021.153.01.0048.01.ENG