The European vehicle makers’ organisation, Acea, has called for ‘urgent action’ and a supportive industrial policy from the EU to help Europe’s auto industry adjust to overcapacity.

“Now more than ever, the industry needs a supportive framework and strong industrial policy in order to keep jobs and production in Europe,” ACEA said. 

ACEA said it welcomes the European Commission’s recent Communication on Industrial Policy as well as CARS 2020, the action plan that it launched today for a competitive and sustainable automotive industry in Europe.

But it warned that more action is needed. 

The industrial policy and CARS 2020 put the focus on developing long-term policies and facilitating investments for the future. “This is necessary but not sufficient,” said ACEA chief Ivan Hodac. “Recent events show that the car industry in the EU is undergoing an important process of adaptation and restructuring right now. The EU should urgently use all the means at its disposal to mitigate the social and economic consequences of this process.” In particular, it should explore ways to improve labour flexibility and support the affected workers and regions.