EU launches new initiatives to boost auto leadership

President Ursula von der Leyen today chaired the third Strategic Dialogue on the Future of the European Automotive Industry, reaffirming the EU’s determination to secure global leadership in clean, connected, and automated mobility.

The meeting brought together industry leaders, social partners, and policymakers, focusing on the rapid implementation of the Automotive Action Plan launched earlier this year.

With technology transforming mobility and geopolitical competition intensifying, von der Leyen underlined that “there can be no business as usual.” Key discussions centred on accelerating Europe’s leadership in electric vehicles, advancing innovation in connected and autonomous driving, and strengthening the continent’s battery manufacturing industry.

The Commission also announced new initiatives to protect European companies from unfair competition, improve access to critical raw materials, and support workers through reskilling measures.

MoU to accelerate innovation

A highlight of the meeting was the signing of a Memorandum of Understanding (MoU) by Commissioners Ekaterina Zaharieva and Apostolos Tzitzikostas alongside industry stakeholders. The MoU brings together the 2Zero Partnership (zero-emission road transport), the CCAM Partnership (connected and automated mobility), and the BATT4EU Partnership (battery value chain innovation). The joint effort aims to strengthen Europe’s position as a global leader in sustainable and smart mobility by 2035.

“The car of the future will be a supercomputer on wheels, powered by electrification and AI,” said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.

She announced the creation of the European Connected and Autonomous Vehicles Alliance (ECAVA), which will serve as a platform for industry-wide cooperation on software-defined vehicles, AI, and autonomous driving ecosystems. Its first meeting will take place in late October.

ACEA reaction

The European Automobile Manufacturers’ Association (ACEA) welcomed the clear focus on addressing structural challenges facing the industry.

“We agree with the Commission President that bold and fast action is required,” said Ola Källenius, ACEA President and CEO of Mercedes-Benz. “No one has more at stake in the success of zero-emission mobility than Europe’s automakers. A thriving Europe needs us, and we need a thriving Europe.”

Källenius emphasized the urgent need to make the EU’s CO2 framework for cars and vans fit for reality, calling for balanced policies that deliver on decarbonisation, competitiveness, and supply chain resilience.

ACEA also flagged specific sectoral concerns:

Passenger cars: support for small and affordable EV manufacturing.
Vans: dedicated measures to boost the market, where electric uptake stands at only 8.5%.
Trucks and buses: acceleration of megawatt charging, grid capacity upgrades, and purchase incentives, with ACEA urging the EU not to wait until 2027 to review CO2 standards for heavy-duty vehicles.

“Truck and bus makers are committed to Europe’s green transition: the vehicles are ready, but the enabling conditions are not,” added Christian Levin, CEO of Traton Group and Scania.

He welcomed recent discussions with Commissioners, noting “distinct challenges require dedicated attention.”

Next steps

The Dialogue also reviewed progress on the Automotive Action Plan launched in March and gathered input on upcoming initiatives, including revisions to CO2 standards for cars and vans, proposals on corporate fleets, and regulatory simplification across vehicle categories.