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Von der Leyen announces action plan to address EU auto industry crisis

  • By Al Mayadeen English
  • Source: News Websites
  • 30 Jan 2025 18:45
2 Min Read

Ursula von der Leyen discusses the challenges faced by the automotive industry across the European Union, mainly driven by the absence of Russian fuel and Chinese competition.

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  • European Commission President Ursula von der Leyen delivers her speech on security and defense at the European Parliament in Strasbourg, France, Wednesday, Feb. 28, 2024 (AP)
    European Commission President Ursula von der Leyen delivers her speech on security and defense at the European Parliament in Strasbourg, France, Wednesday, Feb. 28, 2024 (AP)

On Thursday, European Commission President Ursula von der Leyen announced that she would unveil a detailed action plan on March 5 to address the crisis facing the European auto industry.

In a statement, Von der Leyen explained that the European automotive industry is at a critical juncture, challenged by several obstacles that prompt urgent action. "Today marks the beginning of a dialogue that will help us navigate the changes ahead. The outcome of this dialogue will be a comprehensive Action Plan, which we will present on March 5th," she added. 

Von der Leyen added that the action plan would lay out a strategy to help the industry overcome the crisis and remain competitive in the global market.  

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Recently, the automotive sector in EU countries has faced significant difficulties, partly due to the energy crisis caused by a sharp decline in energy imports from Russia. European car manufacturers have reported weakened demand and surplus inventory while facing intense competition from electric vehicle producers, especially those from China. As a result, some car manufacturers have been forced to shut down their plants within the EU.

Meanwhile, EVs are expected to surpass cars with internal combustion engines in China for the first time this year, marking a significant turning point that places the world’s largest car market years ahead of Western competitors, the Financial Times reported.

According to the latest estimates from four investment banks and research groups shared with the Financial Times, Chinese EV sales—including pure battery and plug-in hybrids—are projected to grow by around 20% year on year, reaching over 12 million cars in 2025. This would more than double the 5.9 million sold in 2022.

Read more: EU votes for tariffs on Chinese EVs; auto industry slams decision

  • Ursula von der Leyen
  • electric vehicles
  • China
  • European Commission
  • European Union

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