Auto Finance Sponsored by Auto Finance News Auto manufacturers and suppliers outline must-act priorities Published: 28th January 2025 Share European automotive manufacturers and suppliers have called for urgent, impactful actions ahead of the highly anticipated Strategic Dialogue on the future of the European automotive industry. Representing a sector under mounting pressure from stringent regulations, global competition, and dwindling demand, industry leaders are urging policymakers to adopt a more market-driven approach to the ongoing transition toward cleaner mobility. The Strategic Dialogue, seen as a cornerstone for shaping the future of the European automotive sector, comes at a pivotal time. Stakeholders stress that the meeting must move beyond assessments and deliver tangible results based on the recommendations of former European Central Bank President Mario Draghi. Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA), emphasised the urgency of action: “No more time for reports – the Strategic Dialogue now must deliver real impact based on the Draghi recommendations. We need to move from penalties-driven to market-driven and demand-driven approaches to the transition. As an immediate priority, EU action to address crippling CO2 2025 compliance fines for light-duty vehicles is an essential must-do to keep our industry competitive.” Benjamin Krieger, Secretary General of CLEPA, the European Association of Automotive Suppliers, highlighted the broader implications of inaction: “The Strategic Dialogue comes at a pivotal moment, as regulatory pressure, global competition, and weak vehicle demand have strained the industry, slowing business, reducing investment capacity, and impacting the workforce. Only in 2024, the automotive supply industry announced 54,000 job losses. Automotive suppliers are vital not only to the EU’s prosperity but also to the stability of regional and local economies, yet these foundations are eroding. Now is the time for industry and policymakers to align and take decisive action for long-term technology-open regulations.” In preparation for the dialogue, the ACEA and CLEPA have outlined key short-term priorities that must be addressed to bolster the industry’s resilience and competitiveness: Resolve the 2025 CO2 target compliance burden: Industry leaders demand immediate action to alleviate the compliance fines for light-duty vehicles, which threaten the financial stability of manufacturers and suppliers. Accelerate CO2 regulation reviews: Policymakers must reassess targets for both light-duty and heavy-duty vehicles, ensuring alignment with market realities and the availability of enabling conditions. Define priorities for the automotive industrial action plan: This plan should be coherent with the EU’s broader Clean Industrial Deal to ensure a unified approach to industrial growth and decarbonization. Stimulate demand for zero-emission vehicles: Discussions should include EU-wide purchase incentive schemes and measures to boost demand for zero-emission heavy-duty vehicles, such as public procurement initiatives. Mitigate trade tensions with the US and China: Policymakers must address the adverse effects of global trade tensions on the EU automotive industry and develop strategies to avoid further disruptions. Establish transparency on enabling conditions: The industry calls for robust, regular (every six months) monitoring of conditions critical to the adoption of zero-emission heavy-duty vehicles, including infrastructure readiness and supply chain resilience. The industry’s leaders see the Strategic Dialogue as an opportunity to align policymakers and businesses around a shared vision for sustainable growth. With the sector contributing significantly to the EU’s economy and employing millions across the region, the stakes are high. The joint industry paper outlining the essential priorities for the Strategic Dialogue is available online. Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories NewsMotor finance compensation estimates balloon NewsSenior management changes at Lightfoot NewsArval’s analysis reveals longevity of EV batteries Auto Finance