The European automotive sector is undergoing a profound transition, facing pressures from global competition, supply chain disruptions, and the twin green and digital transitions. In response, the European Committee of the Regions (CoR) adopted an urgent resolution during its plenary session, calling for a stronger territorial dimension in the implementation of the European Commission’s Industrial Action Plan for the automotive industry.
CoR members welcomed the European Commission’s efforts to support the sector’s shift towards clean mobility, digitalisation, and enhanced competitiveness. However, they stressed that the current Action Plan falls short in addressing the specific challenges faced by regions heavily reliant on automotive manufacturing. These regions are particularly vulnerable to job losses, economic adjustments, and changes in industrial activity linked to the transition. Disparities in infrastructure development – such as uneven deployment of charging and refuelling networks – also require more targeted and place-based support.
Local and regional leaders emphasised the need for a coherent EU industrial policy that safeguards the automotive sector’s contribution to economic growth and job creation. They also highlighted that the existing regulatory framework – including CO₂ emission performance standards for cars and vans – lacks the predictability needed by the industry to adapt effectively. The upcoming 2025 review of these standards was welcomed as an opportunity to provide greater clarity.
Ivan Žagar, Mayor of Slovenska Bistrica, stressed: "The automotive supply industry is a cornerstone of Slovenia's economy, contributing 20% to exports and 10% to GDP. As the European Commission moves forward with its Industrial Action Plan, we must ensure that regional realities are at the forefront of this transition. While the Commission's efforts are welcome, there remains a lack of focus on the territorial dimension and place-based solutions for local communities." He added: "The automotive sector is vital for regions across the EU where manufacturing and supply chains drive growth, innovation, and employment. Therefore, I urge us all to ensure that local and regional authorities play a key role in shaping EU policies, particularly in the development of recharging and refuelling infrastructure. Together, we can accelerate the transition while preserving jobs and maintaining Europe's global competitiveness."
Carlos Carvalho, Mayor of Tabuaço, echoed these sentiments: "The true transformation of the European automotive sector does not occur only through technological innovation, but through the integration of territorial dimensions that ensure sustainable and inclusive development in all regions. Only through collaboration between regional policies and industrial strategies can we ensure a prosperous and harmonious future for all. We are pleased to note the Committee's concern to include and enhance this participation as this is the only way we will be able to have a strategy that is truly representative of the entire European space."
Alberto Cirio, President of the Piedmont Region, underlined the need for fairness: "This resolution calls for a unified approach and for common sense – which will mean that the costs are shared fairly and the poorest are not impacted disproportionately by the requirements of the Green Deal."
Urrutia de los Mozos, Regional Minister for the Presidency, Justice, Security and Administrative Simplification, Government of Cantabria, stated: "The European Union must be forceful in the defence of the automobile sector, with balanced internal measures that allow our industry to face the challenges of electrification in a coherent way and without loss of competitiveness, but also with firmness, reacting against the interventionist decisions threatened by the United States."
"The Industrial Action Plan for the Automotive Industry can be a valuable tool for strengthening the competitiveness and sustainability of our sector. However, it will only be effective if the solutions it proposes are implemented with the involvement of the regions concerned. Only by engaging our automotive regions and regional clusters can we ensure that these solutions are tailored to our specific needs, thus promoting a fair and equitable transition. It is crucial that all levels of governance work together to promote technology-neutral solutions and support local innovation, while ensuring that our businesses remain competitive in the global market." said Carlos Mazón Guixot (ES/EPP), President of the Government of Valencia.
María del Mar Vaquero Periánez, Vice President of the Government and Regional Minister for the Presidency, Economy, and Justice, has called on the European Union to "ease the regulatory framework and streamline bureaucracy to avoid undermining the competitiveness of the automotive sector in Aragón." She urged the EU “to facilitate the energy transition that automotive companies are required to undertake, as they continue to strongly commit to technological innovation and sustainability.”
The resolution also calls for the EU to pursue its climate neutrality goals pragmatically, backed by a robust industrial policy. Local and regional leaders reiterated the importance of technological neutrality in achieving carbon-neutral mobility, ensuring that European manufacturers can remain competitive amidst global and geopolitical pressures.
To mitigate the socio-economic impacts of this transformation, CoR members advocated for increased EU funding for just transition measures, particularly within the next Multiannual Financial Framework post-2027. Strengthened Cohesion Policy will be key to supporting regions most affected by industrial shifts and ensuring no one is left behind in the transition.