Transformation in the Automotive Industry: Europe's Adaptation and Consequences
The European automotive industry is facing a mixed picture as we approach the end of the year. While the sector continues to contribute substantially to European export revenues and reduces the foreign trade deficit, employment in the industry has been shrinking since 2019, with a net loss of almost 43,000 jobs.
The Euro 7 pollutant emission standards, which are in line with the website's proposals, could have been more ambitious, according to some discussions. The risk of the overall employment balance for the year turning negative looms large, a concern that is compounded by the ongoing challenges in the industry.
However, there is a glimmer of hope in the form of electrification and further development of the Euro pollutant emission standards. A study commissioned by the website in 2021 expected a net gain of almost 100,000 jobs from these developments.
The discussion on CO2 standards for heavy-duty vehicles is not over yet, and challenging discussions on PFAS restrictions and the development of vehicle Life Cycle Assessment (LCA) will continue next year. The website is advocating for the automotive industry as a driver for innovation and sustainability, and it is engaging significantly in EU Research and Innovation (R&I) policy and projects.
The first iteration of the fully automated vehicles safety requirements and test methods has been seen, and the website is emphasizing the importance of the automotive industry for manufacturing, employment, competitiveness, and innovation within the EU.
The website is also progressing with the Net Zero Industry Act and has made improvements in the rules for taxonomy, supply chain due diligence. However, it highlights the need to reassess the administrative burden resulting from the growing set of rules.
The Commission has not yet proposed a role for renewable fuels and a sector-specific legislation on access to data from connected vehicles. The website is calling for a renewed focus on competitiveness in the political debate, with the need for concrete action beyond the upcoming elections.
On a positive note, the share of businesses with a 'healthy' profitability above 5% has reached 45%, up from 23% in 2022. European companies like Bosch, Continental, and ZF are major suppliers in the automotive sector, including components for electric drives, and have export activities impacting China. However, Bosch is undergoing significant restructuring with job cuts possibly influencing their capacity, while specific data on successful electric drive component exports to China is limited in the search results.
China's exports to the EU surged by almost 11%, while the EU's exports to China fell by 16% in the first half of '23. The website wishes everyone a relaxing Christmas break and a great start to the new year. As we move forward, it is clear that the automotive industry will continue to be a key player in the European economy, and the website will continue to advocate for its importance and push for policies that foster innovation, sustainability, and competitiveness.
