Auto Finance News

Auto industry calls on EU to cut red tape and boost R&D support

Share

European automobile manufacturers and suppliers are urging the European Union to reduce bureaucratic hurdles and boost research and development (R&D) support, warning that excessive regulation threatens the region’s global leadership in automotive innovation.

Speaking at the European Commission’s Strategic Dialogue Workshop yesterday with European Commissioner Virkkunen, industry leaders from the European Automobile Manufacturers’ Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) stressed that Europe’s automotive sector is a global R&D powerhouse. However, they cautioned that the EU’s current regulatory environment is hampering progress, particularly in digital and automated vehicle technologies.

Sigrid de Vries, Director General of the ACEA, stated: “We need the EU to incentivise, not stymy our comparative lead.

“Automated vehicles are the next frontier and a field we can lead. But to do this we need conditions that favour the creation of a strong digital industrial base,” she added.

The industry is already making significant advances in automation, with self-parking cars and autonomous freight yard trucks becoming a reality. However, De Vries criticised the European Commission’s recent decision to withdraw the Standard Essential Patents proposal—seen as critical for the competitiveness of the automotive sector in autonomous driving—without prior consultation.

CLEPA Secretary General Benjamin Krieger echoed these concerns, emphasising that other global players, particularly the United States, are investing heavily in artificial intelligence, cloud computing, and digital marketplaces.

“Europe must respond with a bold approach to ensure a thriving market for digital mobility services,” he said. “The EU must strengthen its semiconductor and automotive electronics ecosystem, advance R&D, and foster global partnerships and a unified market for autonomous vehicles.”

Industry leaders called for balanced funding through the EU’s FP10 research program, alongside stronger policy support to drive sustainable mobility and digitalisation. With competition intensifying from the US and other regions, they warned that without immediate action, Europe risks losing its status as a world leader in automotive R&D.