Source: European Parliament
The Commission is fully aware that the European automotive sector is facing a critical turning point. The sector is undergoing a structural transformation as the global shift to clean and digital mobility is accelerating, while rapid technological changes and increasing competition are posing significant challenges.
At the same time, the sector faces global supply chain risks and dependencies on raw materials and battery imports, an over-reliance on fossil fuels, fierce competition for talent, cost gaps in key inputs, and an increasingly volatile geopolitical context.
This is why, on 5 March 2025, the Commission adopted an Industrial Action Plan for the European automotive sector, building on the Strategic Dialogue on the Future of the European Automotive Industry[1].
The action plan stresses that the CO2 standards provide long-term certainty and predictability for investors along the value chain, while allowing sufficient lead time for a fair transition.
It sets out a comprehensive set of measures to ensure a fair and socially equitable transition in the sector and to guarantee its international competitiveness, prioritising high-quality jobs and supporting workers through the changes ahead.
To address the employment challenges that come with the transition, the EU has already put in place various initiatives, such as funding from the European Social Fund Plus (ESF+) and the European Globalisation Fund for Displaced Workers (EGF).
In 2026, support through Erasmus+ grants of up to EUR 90 million will be made available for the relevant Large-Scale Skills Partnerships, including the one for the automotive sector . The Commission will also set up a European Fair Transition Observatory, which will identify future job risks and skills gaps.
- [1] https://transport.ec.europa.eu/document/download/89b3143e-09b6-4ae6-a826-932b90ed0816_en?filename=Communication%20-%20Action%20Plan.pdf