The European Commission has announced a new strategic action plan aimed at strengthening competitiveness, sustainability, and innovation in the automotive sector. The plan aims to respond to rapid technological changes and global competition by focusing on autonomous vehicles, electrification, and sustainable supply chains.

Key highlights of the plan:

• Investments to strengthen and secure a reliable supply chain of raw materials for batteries

To avoid strategic dependencies and strengthen the European manufacturing base, the Commission will allocate €1.8 billion to create a secure and competitive supply chain of raw materials for batteries, which will support the growth of the European automotive industry.

• Support for AI-driven, connected, and automated vehicles

To help the European industry take a leading role in the development of autonomous and connected vehicles, the European Commission will create a European Alliance for Autonomous Vehicles. It will include leading companies, universities, and innovation centers. Horizon Europe will provide €1 billion for the 2025-2027 period for public-private investments in software and hardware for autonomous vehicles.

• Flexibility in meeting CO₂ standards

In response to requests from automotive manufacturers, the Commission is proposing an amendment to the CO₂ standards regulation. Car companies will be able to meet their targets by averaging results over a three-year period (2025-2027) instead of through an annual assessment, while maintaining the overall ambition of reducing emissions.

• Ending tax benefits for diesel and gasoline corporate cars

The Commission will propose new measures to promote electromobility in the corporate sector. The termination of tax benefits for internal combustion engine vehicles, which are part of company fleets, is expected to encourage the transition to electric vehicles.

• Support for the workforce

To help the sector cope with the shortage of skilled workers and the reskilling of employees, the EU will expand support through the European Globalisation Adjustment Fund (EGF) and the European Social Fund Plus (ESF+). This will provide opportunities for workers to improve their skills and adapt to the new technological requirements of the industry.

The presented strategic plan is the result of extensive discussions with stakeholders in the automotive sector and demonstrates the EU’s commitment to a sustainable, competitive, and innovative future for the automotive industry. With its strategic location and developed industrial base, Ruse has the potential to benefit from this plan.

For more information on the topic, you can visit the European Commission’s website:

• The Commission is enhancing the competitiveness of the European automotive industry worldwide

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