Automotive industry action plan - Timeline

—

develop roadmaps and investment programmes to spur on the business case for taking the industry from vehicles with driver support features to fully connected and automated (CAV) vehicles;

—

organise industrial collaboration (such as the proposed European Connected and Autonomous Vehicle Alliance) across the ecosystem (including the downstream sector) so as to align with and develop common computing platforms, AI solutions, standards and open-source software, in order to reduce the dependency on big tech and avoid costly fragmentation;

—

create favourable demand conditions for connected and automated vehicles. Although CAVs create value for end users (seamless connectivity, predictive maintenance, automatic updates, zero accidents, infotainment), there is lack of consumer acceptance related to safety concerns, reliability of software and the price of CAV features;

—

establish a (harmonised) regulatory framework to provide regulatory support for large-scale testing of CAVs; to create legal certainty for companies, customers and society (e.g. defining where the liability lies in the event of accidents); and to support the deployment of CAVs on the road;

—

assess the broader social and economic impact on the mobility system of CAVs and new mobility concepts (on-demand mobility, mobility as a service, integration of the car into the grid, integration of collective and private transport); promote alternative business models such as platform cooperatives for urban mobility services;

—

give due attention to the impact of digital technologies on production processes and work organisation;

—

further develop/deploy critical digital infrastructures exchanging real-time and high-quality data and information with vehicles to enable higher levels of automation, safety and efficiency;

—

develop a harmonised approach and a clear timeline for the type-approval of autonomous vehicles;

—

accelerate specific legislation opening up access to in-vehicle data in a fair, secure and effective way for all players in the automotive ecosystem (an Auto Data Act);

—

invest in simplification without compromising on EU leadership in sustainability.

—

Addressing consumer hesitancy by reducing the green premium on EVs by means of both financial and non-financial incentives, whilst offering legal certainty and guarantees.

—

Creating a unified approach to electromobility to address the growing divide between fast-moving and lagging markets. Coordination of demand incentives should provide visibility to the sector about future development of demand.

—

Avoiding a divide between those citizens that can afford to drive/own an electric car and those that will have to stick with an ageing ICE that will be increasingly penalised and taxed. This could be addressed by using the revenues from the Social Climate Fund and the EU’s new emissions trading system (ETS2) to develop social leasing schemes.

—

Developing an affordable EU EV platform to aggregate demand for small EU-made EVs is another solution.

—

Investing massively in charging infrastructure. The forthcoming Sustainable Transport Investment Plan should take decisive action in scaling up the financing for charging infrastructure. Swift implementation of the Alternative Fuels Infrastructure Regulation must deliver on the ambition of installing fast charging stations for trucks every 60 km along the EU’s main transport corridors.

—

Decarbonising corporate fleets offers a fast-track opportunity to accelerate EV adoption, as they account for 60 % of new car registrations in Europe.

—

Developing fair, transparent and clearly displayed pricing systems for public charging stations while improving their interoperability.

—

Reinforcing and digitalising grid infrastructure (smart grids) to mitigate the risk of the increasing load from EV charging overwhelming the existing energy infrastructure, including smart charging (V1G) and vehicle to grid (V2G) technologies.

—

Developing the circular economy as a core pillar of the automotive transition. This includes designing vehicles and components for reuse, repair, and recycling (eco-design), closing the ecological loop (recycling) and mainstreaming lifecycle assessment (LCA) into public procurement and incentive schemes.

—

Helping consumers to make informed decisions, e.g. by introducing a car eco-pass or a repairability index for cars, and recognising the ‘right to repair’.

—

Carrying out full lifecycle assessment of the environmental impact of EVs and the industrial processes linked to their production, to ensure that decarbonisation targets are met without increasing environmental harm elsewhere in the value chain, including outside the EU.

—

Avoiding stranded assets (including human capital and technological capabilities) by developing programmes (including providing support to worker buy-outs) for the transition to clean technologies of the many suppliers dependent on ICE-focused operations, particularly in economically vulnerable regions.

—

anticipate and manage change in a timely manner (e.g. through the proposed European Fair Transition Observatory and the changes in the EGF);

—

establish EU-wide and cross-sectoral reskilling and upskilling programmes with a special focus on regions heavily reliant on the automotive industry (through the Social Climate Fund, an NZIA-type initiative for batteries, or a Just Transition Fund 2.0 for the automotive industry). Good coordination of all reskilling efforts across the automotive supply chain, cooperation with other industries and the diverse national labour markets will increase the efficiency of training programmes. Follow-up on initiatives such as DRIVES, the Automotive Skills Alliance and the recent Union of Skills is needed to support continuous professional development;

—

address the shortage of workers with suitable digital skills (with a special focus on gender imbalances) by, for example, developing better synergies between industry and technical universities, promoting STEM-related education/training, expanding in-work training schemes and promoting life-long learning;

—

pay special attention to the many independent SMEs in the downstream sectors by providing up-to-date training tools and by supporting apprenticeship systems, in which the sector has a long tradition;

—

develop an EU skills passport and harmonise EU certification schemes (including micro credentials and informally acquired competences) to ensure that skills are properly documented and transferable within the EU;

—

establish meaningful social dialogue and timely information/consultation at all levels to address the challenges of the transition and find constructive solutions;

—

address the regional dimension through a coordinated mobilisation of all stakeholders (the social partners, research institutes, regional development agencies, training providers, automotive clusters, etc.);

—

address new OSH risks due to electrical hazards and new pollutants;

—

create a SURE 2.0 fund to support furlough schemes to keep workers on board during periods of downtime.

—

addressing unfair trade practices through a robust and pro-active use of trade defence instruments. More stringent checks on imports of automotive components are also needed to assess whether they comply with European standards such as REACH;

—

strengthening regional industrial ecosystems for key technologies (e.g. batteries, chips, software, AI);

—

making use of instruments such as IPCEIs (Important Projects of Common European Interest), the Strategic Technologies for Europe Platform (STEP), and the European Investment Bank to support large-scale, pan-European investments in automotive innovation and industrial deployment;

—

reforming competition policy to allow strategic alliances and mergers that create European players of sufficient scale to compete globally, especially in digital and green automotive technologies;

—

promoting exports. New trade agreements need to be concluded, while existing negotiations must be expedited, including the ratification of the EU-Mercosur agreement (with strong sustainability chapters);

—

reducing the cost gap with China by using standardised hardware and software platforms and heavily standardised battery packs, as well as by bringing energy costs into line with our main competitors;

—

attracting foreign direct investment can contribute to strengthening the automotive ecosystem. However, these investments must be made conditional on technology transfer, integration into local value chains, and the creation of R&D or design centres;

—

enhancing administrative efficiency and simplification, with a special focus on SMEs. Provide lead times for new regulations that are in line with the product cycle of new cars. Moreover, improving regulatory coordination inside the EU is of the utmost importance as the complexity of the EU’s decision-making processes is leading to inefficiencies and complicating governance;

—

supporting reshoring and friend-shoring strategies for critical supply chains, e.g. by developing a comprehensive local content policy for the automotive sector and its strategic components. The rules-of-origin framework provides a solid instrument for use not only in trade policies but also in public procurement, incentive schemes (social leasing), and FDI screening. Local content rules should also inhibit the circumvention of tariffs by setting up ‘screwdriver plants’ to assemble knock-down kits.