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EU car industry seeks escape from ‘mortal danger’

Automakers in Europe are concerned about the EU authorities' lack of a pragmatic political plan to transform the industry and argue that the current crisis in this segment of the industry poses a serious threat to the bloc's economic future," Logos Press reports.
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EU car industry seeks escape from ‘mortal danger’

This is stated in a recent open letter from Ola Kallenius and Matthias Zink, presidents of the European Automobile Manufacturers’ Association (ACEA) and the European Association of Automotive Suppliers (CLEPA), to Ursula von der Leyen, writes Euronews.

The meeting between the key players of the European car industry and Ursula von der Leyen, which will be held this Friday, September 12, is intended to solve the problems of the industry.

The European automotive industry is “in mortal danger”, said a few months ago, European Commissioner for Industrial Policy Stefan Sejournet, not shy in expressions.

The industry’s main problems in Europe are slowing sales, high energy prices, growing global competition and regulatory and trade uncertainties. As Euronews notes, this set of negative factors has “plunged the industry into a spiraling crisis.”

“There is a risk that the future map of the global automotive industry will not include Europe,” the publication quoted Stephane Sejournet as saying.

Friday’s meeting with Ursula von der Leyen will be the third and last of this year’s attempts to find acceptable solutions. Brussels calls the search a “Strategic Dialogue on the Future of the Automotive Industry.”

Euronews recalls that last spring the EU launched an industrial action plan that includes funds for battery manufacturers, notably through the €1.8 billion Battery Booster program, and an additional billion euros for battery research and development under the Horizon Europe program.

However, even these initiatives have failed to affect the overall gloomy outlook. Moreover, in June this year, some factories in the EU producing auto parts had to shut down operations due to shortages of raw materials and components sourced from China.

“The sense of urgency has gone nowhere,” Sigrid de Vries, ACEA’s director general, told Euronews. – We need more action.”

An open letter from the presidents of ACEA and CLEPA to Ursula von der Leyen urges, “The plan for Europe’s transformation must go beyond idealism and recognize today’s industrial and geopolitical realities.

According to industry players, in order to make the transition to electric vehicles a clear choice for a critical mass of European consumers and businesses, the cost of energy for charging must be lowered, more purchase subsidies and lower taxes are needed, and charging infrastructure must be more evenly distributed.

Currently, the market share of electric vehicles in Europe is stuck at around 15% – not enough for a leap forward in the development of a technology that is considered crucial for the future.


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