As announced by President Ursula von der Leyen to the European Parliament on 27 November 2024, and as formally incorporated into the Communication A Competitiveness Compass for the EU (COM(2025) 30 final), published on 29 January 2025, the European Commission launched a Strategic Dialogue with the European automotive industry, social partners, and other key stakeholders on 30 January 2025. This initiative responds to growing concerns from EU Member States and industry stakeholders regarding the declining competitiveness of the European automotive sector. The EU faces mounting competitive pressures from third-country manufacturers and the necessity of meeting increasingly stringent decarbonization objectives.

Pursuant to point 1.2, page 10 of the Communication Competitiveness Compass for the EU, the strategic dialogue will directly contribute to the development of an EU Industrial Action Plan for the automotive sector. This plan is expected to incorporate ambitious supply- and demand-side initiatives, including a proposal on greening corporate fleets. In this context, President von der Leyen has tasked Commissioner Apostolos Tzitzikostas with presenting an Automotive Industry Action Plan on 5 March 2025. It is anticipated that the findings of the Strategic Dialogue will be integrated into this Action Plan, ensuring a coherent and forward-looking strategy for the sector.

The inaugural high-level meeting of the Strategic Dialogue convened on 30 January 2025 and brought together 22 key industry organizations, including leading manufacturers, suppliers, trade unions, and consumer representatives. Participants included ACEA (The European Automobile Manufacturers’ Association), BEUC (The European Consumer Organisation), BMW Group, Robert Bosch GmbH, ChargeUp Europe, CLEPA (The European Association of Automotive Suppliers), Daimler Truck, ETF (European Transport Workers’ Federation), Forvia, IndustriAll European Trade Union, IVECO Group, MAHLE Group, MILENCE, RECHARGE, and Renault Group, among others.

The Strategic Dialogue will continue with a series of regular meetings and workshops that will engage industry representatives, social partners, and policymakers, as well as broader consultations involving additional stakeholders from across the automotive value chain.

The discussion will focus on the following key themes and priorities:

1. Innovation and future technologies – Address the EU’s lag in key technologies (e.g., batteries, software, autonomous driving) by fostering R&D collaboration, talent acquisition, and risk-sharing models
2. Clean transition and decarbonization – Focus on regulatory revisions, charging infrastructure expansion, and demand-stimulation measures to accelerate the shift to clean mobility while addressing affordability and equity issues
3. Competitiveness and resilience – Tackle high input costs, supply chain vulnerabilities, and workforce upskilling to ensure the sector’s long-term resilience
4. Trade and global competition – Address unfair practices in global markets, strengthen EU trade policies, and monitor foreign investments in the supply chain
5. Regulatory streamlining – Optimize the EU’s regulatory framework to enhance coherence, reduce industry burdens, and promote common technical standards

Upon completion of these discussions, the European Commission is expected to present a report to the European Parliament and the Council, outlining the challenges identified by stakeholders and proposing corresponding policy actions. In accordance with the Competitiveness Compass, this report is expected to be published in the first quarter of 2025.

For operators in the automotive industry, this is a critical moment that necessitates close monitoring of ongoing developments at the EU level. These developments include, in summary: the adoption of a report that will be submitted to Parliament and the Council, incorporating the challenges identified by stakeholders and the recommended policy actions arising from the Strategic Dialogue; the presentation of an Automotive Industry Action Plan, the precise scope of which remains undetermined, though it is anticipated to serve as a strategic political directive for the sector; and the introduction of a legislative proposal concerning the greening of corporate fleets, which is expected to be part of the Automotive Industry Action Plan.

Once the Automotive Industry Action Plan is published, we will have greater clarity on the specific regulatory measures that the European Commission intends to pursue. While the precise scope of the plan remains to be seen, it is already known that it will include a legislative proposal on greening corporate fleets. This proposal is expected to play a significant role in shaping industry obligations and opportunities in the transition to more sustainable mobility.

We will continue to monitor these developments and provide clients with timely insights and strategic guidance on how these forthcoming regulatory changes may impact their business operations.