EU Unveils Plan to Revitalize Auto Industry Amid Global Competition and Climate Goals

The EU Commission proposes measures to bolster the struggling automotive sector, including flexibility on emissions targets and investments in innovation and electric vehicles.

The EU Commission has presented a comprehensive action plan to support the automotive industry, which contributes 7% to Europe's GDP and employs 14 million people.
Key measures include granting automakers more flexibility in meeting CO2 emissions targets by allowing compliance over multiple years instead of annually.
The plan proposes a €1 billion investment in autonomous driving technologies and a €1.8 billion innovation fund to secure raw materials and enhance battery production competitiveness.
Initiatives to promote electric vehicle adoption include social leasing programs for low-income households and incentives for businesses to transition their fleets to climate-neutral vehicles.
The Commission will review the 2035 ban on new combustion engine vehicles this year, with potential consideration of alternative technologies like e-fuels.