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The automotive sector is facing deep turbulence. More than 100,000 job losses were announced in 2025, driven by declining demand, global overcapacity, unfair competition and short term corporate strategies. Europe’s automotive workforce is under severe pressure, and urgent action is needed to secure production, investment and quality employment.
Boosting demand for clean vehicles made in Europe
IndustriAll Europe's position paper stresses that Europe must act quickly to support demand for clean vehicles made in Europe. Corporate fleets, representing 60% of new registrations, and public procurement must become key levers. Social leasing schemes can also play a role, provided they are strictly conditional on European production and quality job requirements.
Local content, regulatory stability and the battery value chain
IndustriAll Europe welcomes the introduction of local content requirements in the Industrial Accelerator Act, including the proposal that vehicles benefiting from public support must contain at least 70% European content. However, loopholes and overly broad geographical definitions risk undermining these provisions. Stronger rules are needed to ensure that public money supports European jobs and value chains.
On emission standards, industriAll Europe supports targeted flexibilities but warns against weakening regulatory stability. Delaying emission reductions would penalise first movers and reward laggards. All flexibilities must be tied to binding commitments on employment, investment and production in Europe.
Our position paper also calls for a comprehensive approach to the battery value chain. Europe must develop domestic capacity in mining, refining, cell production, recycling and advanced materials, with strict social and environmental standards for imported inputs. Current EU funding proposals fall short of what is needed to build a competitive European battery ecosystem.
Workers at the centre of the transition
Above all, the transition to electric mobility must create good jobs, not destroy them. This requires strong social conditionalities, respect for collective bargaining, investment in training and reskilling, and worker participation in anticipation of change.
Europe can lead in clean mobility, but only if it combines climate ambition with a strong industrial strategy and a Just Transition for automotive workers.