Europe’s automotive industry is calling for a rethink of the policies guiding the transition to cleaner transport.

In a joint letter to the EU Commission, ACEA and CLEPA argued that CO₂ rules need updating to reflect today's economic and industrial reality.

Why the Industry Wants Change

ACEA and CLEPA say the automotive sector now faces a more difficult combination of pressures.

Manufacturers are investing heavily in electrification and cleaner technologies, but at the same time they are dealing with weaker demand, higher costs, stronger competition from outside Europe and growing pressure on supply chains.

The associations argue that the EU’s climate objectives remain important, but the route aoward them should also protect industrial competitiveness, jobs and production capacity inside Europe.

Their central point is that policy cannot remain static while the market around it changes.

The September Dialogue Matters

The letter was published ahead of the Strategic Dialogue on the future of Europe’s automotive industry, scheduled for 12 September 2025.

ACEA and CLEPA presented that meeting as an opportunity to reassess how EU policy supports the entire automotive value chain, from vehicle manufacturers to component suppliers.

Rather than abandoning climate targets, the industry is asking for a framework that takes account of present-day market realities and the pace at which consumers, infrastructure and manufacturers can realistically adapt.

Competitiveness Is Becoming Central

One of the biggest concerns is Europe’s position in the global car market.

Competition is intensifying, particularly in electric vehicles, batteries, software and other technologies that increasingly determine the value of modern cars.

European manufacturers and suppliers therefore want policy to support investment and innovation without creating costs that weaken their position against international rivals.

Supply-chain resilience is another priority. Recent disruptions have shown how dependent the automotive sector can be on semiconductors, critical materials and components produced outside Europe.

Climate Goals Remain in Place

The letter does not argue against the EU’s environmental ambitions.

Instead, ACEA and CLEPA say the strategy for reaching those goals should evolve with economic and industrial conditions.

That means balancing emissions reductions with the ability of manufacturers and suppliers to finance new technologies, maintain employment and keep production competitive.

The debate is therefore increasingly focused not only on how quickly Europe can move toward cleaner transport, but also on whether the transition can be sustained economically.

A Broader Policy Question

The discussion reflects a larger challenge facing the European automotive sector.

Regulation can encourage technological change, but manufacturers also need sufficient consumer demand, charging infrastructure, affordable energy and competitive production conditions.

If those elements develop at different speeds, the transition becomes harder to manage.