The European Economic and Social Committee (EESC) recently adopted an opinion welcoming the European Commission’s Industrial Action Plan, designed to help Europe’s automotive industry navigate a period of profound change. The shift to cleaner and more digital vehicles must be managed in a way that protects jobs, supports businesses and ensures no worker or region is left behind.

The automotive sector employs 3.5 million people directly and another 4.5 million in related services, with a trade surplus of nearly EUR 90 billion in 2024. However, it faces rapid technological change, evolving consumer expectations and rising global competition.

‘The automotive sector is moving from hardware to software, from mechanics to electronics, and from conventional to electric powertrains. The automotive industry should seize the opportunities of the green and digital transformation of the automotive ecosystem and turn it into a competitive advantage,’ said co-rapporteur Guido Nelissen.

While the EESC supports the EU’s climate goals, it warns that the transition to zero-emission vehicles requires strong social and economic measures. It calls for a European strategy centred on skills development, innovation, infrastructure and the circular economy, with special focus on SMEs, which form the backbone of the supply chain. Large-scale reskilling, backed by EU funds such as the Social Climate Fund, will be vital to avoid disruption. The Committee proposes an EU skills passport and stronger cooperation between industry and education.

Innovation is a key strength of the automotive sector, with 15% of its value added invested in R&D, but Europe still lags behind in software and digital technologies. The EESC therefore calls for more investment in batteries, autonomous and connected vehicles, and common software standards.

It also emphasises the need for better coordination of electrification policies, including faster deployment of charging infrastructure, integration of smart grids and support for the repair and maintenance sector.

The Committee highlights trade pressures, with imports from China challenging EU competitiveness. It calls for stronger trade defence, reshoring of key parts, and sustainable new trade deals. (gb)