Automotive Suppliers Advocate for Technology-Neutral Strategy in Meeting with President Von der Leyen

technology-neutral approach to climate regulations as the industry faces mounting economic pressures and job losses.">

September 12, 2025

Brussels – Top Executives from across Europe’s automotive supply sector convened with European Commission President Ursula von der Leyen today to address a growing crisis threatening the continent’s economic stability. At the heart of the discussion: the urgent need for a versatile and inclusive approach to climate legislation, prioritizing technological flexibility over prescriptive mandates.

Industry Leaders Advocate for Balanced Climate Strategy

The meeting, a continuation of the Strategic Dialogue initiated eight months prior, emphasized the critical importance of collaborative action. Matthias Zink, President of CLEPA, articulated a clear message: “There is agreement that we must work together to make the conversion succeed.” He underscored the complex challenges ahead, encompassing the rollout of charging infrastructure, the establishment of robust electrification frameworks, and the implementation of effective policy measures.

Zink further stated that maintaining aspiring climate targets requires a collaborative path forward. He called for significant revisions to CO₂ regulations, advocating for genuine openness to diverse climate-neutral technologies. This includes a potential freeze on the utility factor for plug-in hybrids, and also support for the advancement of hybrids, range extenders, hydrogen, and renewable fuels.

Focusing exclusively on battery-electric vehicles, He warned, risks diminishing Europe’s leadership position in a globally competitive market. Europe currently possesses a diverse portfolio of climate-neutral technologies, and maintaining this advantage is paramount.

Economic Pressures and job losses Mount

The call for policy adjustments comes amid increasing economic strain on automotive suppliers. Data reveals a meaningful cost disadvantage-ranging from 15% to 35%-when compared to global competitors.This disparity stems from high energy and labor expenses, burdensome regulations, and fragmented EU frameworks.

The impact is already being felt in the workforce. Over 54,000 jobs were lost within the sector in 2024, and projections indicate another 22,000 job losses are anticipated this year. These figures are driven by factory closures and stalled investment initiatives.

Did You Know? according to a recent report by the European Automobile Manufacturers Association (ACEA), investment in electric vehicle-related technologies in Europe increased by 18% in the last year, but remains below levels in the US and China.

To secure Europe’s long-term industrial resilience, Zink emphasized the need to prioritize manufacturing, research and development, and the retention of vital expertise within the region. This requires maintaining local content in vehicles and safeguarding essential capacities across the entire supply chain, extending beyond batteries, semiconductors, and software.

Cost Disadvantage Comparison

Factor	Europe	Global Competitors
Energy Costs	High	Lower
Labor Costs	High	Lower
Regulatory Burden	Significant	Reduced
framework Fragmentation	High	Low
Overall Cost Disadvantage	15-35%	0%

A follow-up meeting of the Strategic Dialogue is scheduled for December, where further discussions and potential policy adjustments are expected to take place.

Pro Tip: Stay informed about evolving EU regulations impacting the automotive industry by regularly visiting the European commission’s official website.

The Future of Automotive Technology in Europe

The debate over the optimal path to decarbonizing the automotive industry is intensifying globally. While electrification is a key component, manny experts believe a diversified approach-incorporating hydrogen, synthetic fuels, and advanced combustion engine technologies-is crucial for achieving climate goals while preserving economic competitiveness. The European Union’s decision will have far-reaching consequences for the future of mobility and its industrial base.

The European Green Deal, launched in 2019, sets ambitious targets for reducing greenhouse gas emissions. However, the implementation of these targets requires careful consideration of the social and economic impacts, particularly for industries like automotive that are undergoing a major transformation.Finding the right balance between environmental sustainability and economic viability is a key challenge for policymakers.

Frequently Asked Questions

What is the Strategic Dialogue?

The Strategic Dialogue is an initiative launched by the European Commission to address the challenges facing the automotive supply industry in Europe.

Why are automotive suppliers facing cost disadvantages?

Automotive suppliers in Europe face cost disadvantages due to high energy and labor costs, regulatory burdens, and fragmented EU frameworks.

What technologies are being considered as alternatives to electric vehicles?

Hybrids, range extenders, hydrogen, and renewable fuels are being considered as climate-neutral alternatives to solely relying on electric vehicles.

How many jobs have been lost in the automotive supply sector recently?

More than 54,000 jobs were lost in the automotive supply sector in 2024, with another 22,000 anticipated this year.

What is CLEPA’s role in this debate?

CLEPA, the European Association of Automotive Suppliers, represents the interests of automotive suppliers and advocates for policies that support the industry’s transition to a lasting future.

What do you think? Should the EU prioritize a technology-neutral approach, or focus solely on electric vehicle development? Share your thoughts in the comments below!

What specific concerns did automotive suppliers raise regarding prescriptive regulations during the meeting with President Von der Leyen?

The Push for Flexibility in Automotive Regulations

Automotive suppliers are increasingly vocal about the need for a technology-neutral approach to upcoming European Union regulations, a key message delivered during a recent strategic dialog with President Ursula von der Leyen. The meeting, foreshadowed in January 2025, brought together major players in the automotive ecosystem – from vehicle manufacturers like renault, Volkswagen, and BMW to key supplier organizations such as CLEPA (European Automotive Suppliers Association) and ACEA. The core of the discussion revolved around ensuring future-proofing for the industry amidst rapid technological shifts in electric vehicles (EVs), internal combustion engines (ICE), and emerging choice fuel technologies.

Why Technology Neutrality Matters for the Automotive Industry

The suppliers’ argument centers on avoiding prescriptive regulations that favor one technology over another. A rigid framework, they contend, could stifle innovation and hinder the development of diverse powertrain solutions. This is notably crucial as the industry navigates the complex transition towards enduring mobility.

Here’s a breakdown of the key concerns:

* Hindered Innovation: Overly specific regulations can limit investment in promising technologies that don’t promptly align with current policy preferences.

* Increased Costs: Adapting to constantly shifting regulatory landscapes adds notable costs for suppliers and manufacturers.

* Reduced Competitiveness: A lack of flexibility could put European automotive companies at a disadvantage compared to global competitors.

* Slower Transition: A diverse approach, encompassing various technologies, may accelerate the overall transition to cleaner transportation.

Key Players and Their Stances

The dialogue included representation from a broad spectrum of industry stakeholders.

* ACEA (European Association of Automobile Manufacturers): Representing giants like Stellantis, Mercedes-Benz, Daimler, and ferrari, ACEA emphasized the need for a holistic approach that considers the entire vehicle lifecycle, including manufacturing and end-of-life management.

* CLEPA (European Automotive Suppliers Association): CLEPA played a central role in advocating for a level playing field, stressing that suppliers are critical to implementing any new technology and require regulatory certainty.

* Vehicle Manufacturers (Renault, Volkswagen, BMW, Volvo, Iveco): Each manufacturer expressed unique perspectives, but a common thread was the desire for regulations that allow them to pursue diverse powertrain strategies.

* European consumer Organization (BEUC): Representing consumer interests, BEUC highlighted the importance of affordability and accessibility of clean mobility solutions.

The March 5th Action Plan & beyond

President von der Leyen is expected to unveil a complete Automotive Industry Action Plan on March 5th. While details remain limited, industry sources suggest the plan will address key areas such as:

1. raw Material Security: Ensuring access to critical raw materials needed for battery production and other advanced technologies.
2. Skills Development: Investing in training and education to prepare the workforce for the changing demands of the automotive industry.
3. Infrastructure Development: Expanding charging infrastructure for electric vehicles and alternative fueling stations.
4. Regulatory Framework: Establishing a clear and predictable regulatory surroundings that fosters innovation and investment.

The suppliers are hoping the Action Plan will reflect a commitment to technology neutrality, allowing them to continue developing a range of solutions – from advanced hybrid vehicles and synthetic fuels to fuel cell technology and next-generation battery technology.

Benefits of a Technology-Neutral Approach

Adopting a technology-neutral strategy offers several advantages:

* Faster decarbonization: Encouraging a wider range of solutions can accelerate the reduction of greenhouse gas emissions.

* Economic Growth: Fostering innovation creates new business opportunities and jobs.

* Enhanced Resilience: Diversifying the automotive ecosystem makes it more resilient to disruptions.

* Consumer Choice: Providing consumers with a variety of options ensures they can choose the vehicles that best meet their needs and budgets.

Real-World Examples of Technology Diversification

Several automotive companies are already demonstrating the benefits of a diversified approach:

* Porsche: Investing heavily in both electric vehicles (Taycan) and synthetic fuels (eFuels) as a potential pathway to decarbonizing existing ICE vehicles.

* Toyota: Continuing to develop and refine hybrid technology alongside its battery electric vehicle strategy.

* BMW: Pursuing a multi-pathway approach, including EVs, hybrids, and hydrogen fuel cell vehicles.

Navigating the Regulatory Landscape: practical Tips for Suppliers

For automotive suppliers, proactively navigating the evolving regulatory landscape is crucial. Here are some practical tips:

* Stay Informed: Regularly monitor EU policy developments and industry news.

* Engage with Policymakers: Participate in industry consultations and advocate for yoru interests.

* Invest in R&D: Continue to innovate and develop a diverse portfolio of technologies.

* Collaborate with partners: Work with other companies and research institutions to share knowledge and resources.