Automotive: regions and cities want the EU Action Plan to pay more attention to territorial challenges of the industry transition

The European automotive sector faces ongoing challenges in its transition, tackling pressures from global competition, supply chain disruptions and the shift towards climate neutrality and digitalisation. In this regard, the European Committee of the Regions (CoR) adopted an urgent resolution during the plenary session on 3 April, calling for a stronger territorial approach in the implementation of the European Commission’s Industrial Action Plan for the European automotive sector. 

In the resolution, CoR members welcome the European Commission’s efforts to support the automotive sector’s shift towards clean mobility, digitalisation, and enhanced competitiveness. However, they highlighted the urgent need to integrate place-based solutions and ensure regional voices are fully considered in the transition towards a sustainable and competitive European automotive industry. Local leaders highlighted that the Action Plan falls short in addressing the specific needs of regions heavily reliant on automotive manufacturing. The transition to climate neutrality and digitalisation will have a significant impact on these regions, posing challenges such as job shifts, economic adjustments, and changes in industrial activity. Regional disparities in infrastructure development, such as the inconsistent rollout of charging networks, require more targeted support.  

Local and regional leaders stressed the necessity of a coherent EU industrial policy for the automotive sector, pointing out that the current approach lacks an overarching strategy to safeguard the industry’s contribution to economic growth and job creation. They also welcomed the upcoming 2025 review of CO₂ emission performance standards for cars and vans and warned that the regulatory framework does not provide sufficient certainty for the sector’s adaptation. Therefore, CoR members called for pursuing the overall climate objectives of the EU in a pragmatic way combined with a robust industrial policy. 

Furthermore, local and regional leaders underlined the importance of enabling carbon-neutral solutions based on technological neutrality, ensuring European manufacturers remain competitive in the face of global competition and geopolitical challenges. To mitigate the socio-economic impact of the transition, CoR members called for increased funding for just transition measures within the EU’s next long-term budget post-2027, particularly through a strengthened Cohesion Policy that reduces regional disparities and supports regions most affected by industrial shifts. 

In a letter to Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism, the chair of the Automotive Regions Alliance, Guido Guidesi, and the chair of the CoR COTER commission, Vasco Alves Cordeiro (PT/PES), shared a first reaction to the Action Plan stressing that regional perspectives should be integrated into the execution of the plan and that concrete actions for regional resilience, workforce adaptation, and industrial transformation should be defined.  

Quotes 

Kata Tüttő (HU/PES), President of the European Committee of the Regions: “The car industry is going through massive changes — cleaner engines, smarter technology, and big shifts in how things are made. But every region is different. That’s why we’re pushing to make sure local voices are heard and supported in this transition. We cannot have a plan for the future of cars without including the places and people who build them. This will stay on our radar, especially as we head into key future EU budget talks this summer.” 

Guido Guidesi, Chair of the Automotive Regions Alliance and Regional Minister for Economic Development of the Lombardy region: “We must save the automotive industry, and to do that it is necessary to revise those rules and deadlines that are damaging Europe's largest industry. The automotive industry has united Europe by involving all territories, as demonstrated by the Automotive Regions Alliance and its 38 member regions: it is time for the European lawmakers to restore the industry's future and competitiveness. To do this we, as regions and territories, have put forward proposals and content in full cooperation. I want to reiterate this is not a choice of political opportunity, but it is a political will aimed at saving the European automotive industry. Change and correct mistakes now to look at the future. Do it and do it soon.” 

Background 

• Video and photos from the debate.  

• The Automotive Regions Alliance is an initiative of the European Committee of the Regions, consisting of 38 participating regions, that recognises the need for decisive action to achieve the EU's climate targets. It aims to bring together regions with a strong automotive sector that want to play an active role in decarbonising the transport sector and contribute to achieving the European Green Deal targets, to ensure a just transition for automotive regions. 

• On 5 March, the European Commission presented the Industrial Action Plan for the European automotive sector which will support the entire automotive industry's transition to clean, connected, and increasingly automated vehicles, to guarantee its international competitiveness.   

Contact 

Theresa Sostmann 

Tel: +32475999415 

Theresa.Sostmann@cor.europa.eu