On the 24th of June 2025, PubAffairs Bruxelles organised an afternoon of discussion on how the European Union can foster a sustainable and competitive European automotive ecosystem. The event was also a timely opportunity to discuss whether Europe will be able to formulate a comprehensive strategy for the automotive sector, with our distinguished speakers, Pierfrancesco Maran MEP (S&D/IT), Giacomo Migliore, Policy Officer, Road Transport, European Commission DG MOVE, Raluca Marian, Director, International Road Transport Union (IRU), Adam McCarthy, Secretary General, ETRMA. Arthur Corbin, Business Adviser, Cabinet of the Executive Vice-President Séjourné gave an introductory speech.
The debate was moderated by Emily Waterfield, Freelance Journalist & Editor.
Emily Waterfield opened the event by welcoming the audience and inviting Arthur Corbin to deliver a keynote speech to set the stage for the panel discussion.
Arthur Corbin opened his keynote by linking the European Commission’s Automotive Action Plan to the Draghi Report. He emphasised the adoption of a new co-ownership model in shaping the plan that brings together stakeholders across the value chain to drive innovation, decarbonisation and clean technologies. He noted that this collaborative approach will be extended to other strategic sectors, such as chemicals and steel.
The speaker then highlighted the automotive sector’s central role in enhancing Europe’s economic competitiveness, given its strategic importance and ongoing trade tensions with the US and China. He identified the upcoming EU-China Summit in July as a critical moment to address structural imbalances, including the Chinese overcapacity, subsidies and the issues stemming from the question of fair competition.
He highlighted that the European Commission is actively working with Chinese authorities to address existing disparities. A key feature of the Action Plan is the “Battery Booster” initiative, aimed at reducing Europe’s reliance on foreign battery technologies by 2030, he added. He explained that this initiative will leverage the remaining Innovation Fund to support operational costs and scale battery production across Europe.
Mr Corbin also called for a rethinking of clean tech business models, previewing the Circular Economy Package expected in early 2026, which will include end-of-waste criteria for products such as tyres and batteries. He concluded by highlighting the Commission’s responsiveness and cited a recent legislative evolution of the EU 2025 emissions targets that allows for smoother compliance over the 2025–2027 period.
Following Arthur Corbin’s keynote, the moderator introduced the panel discussion and began by asking Pierfrancesco Maran MEP about the future of autonomous vehicles in the EU and the associated regulatory challenges.
Pierfrancesco Maran MEP began by encouraging a broader reflection on the evolution of European car ownership and usage, noting that cars represent more than transportation, symbolising freedom of mobility. The speaker stressed the importance of supporting autonomous vehicles, given their potential to enhance the services cars and other vehicles can offer and improve citizens’ quality of life, particularly by complementing public transport systems.
He also shared insights from a recent visit to Germany, where he attended a presentation by a company piloting autonomous vehicle projects in both Hamburg and Austin, Texas. Despite using identical technologies, the company estimated that regulatory testing in Austin would take one year, compared to two years in Europe.
This example, MEP Maran argued, highlights a significant challenge: even when technology is ready, deployment in Europe lags behind. He attributed this delay to the lack of a fully functional Single Market and fragmented national regulatory frameworks.
To further encourage the discussion, the MEP announced that he was going to host an event at the European Parliament on the 2nd of July regarding the current developments in the field of autonomous vehicles.
As Pierfrancesco Maran MEP serves as the S&D Shadow Rapporteur for the End-of-Life Vehicles (ELVs) Regulation, Emily Waterfield invited him to share his perspective on the status and outlook of this legislative file.
MEP Maran acknowledged the complexity of the ELVs Regulation, noting that environmental policy proposals often face significant political and technical challenges. A central difficulty has been securing a clear majority within the European Parliament in support of some of the more sensitive aspects of the proposal, he specified.
Nevertheless, the speaker shared encouraging news as a major breakthrough occurred the previous week with a compromise reached at the European Council level. This development, he noted, now positions the file for final approval by the ENVI and IMCO Committees. The compromise includes meaningful provisions aimed at increasing the reuse of vehicle components and significantly reducing the number of vehicles that currently escape formal recycling processes. He then stated that addressing the issue of over three million vehicles annually going “missing” could substantially improve Europe’s circular economy outcomes.
On the regulatory content, the MEP highlighted that one of the pivotal elements is a provision banning the export of ELVs outside the EU, framing this as a critical step toward embedding ELVs within a circular economy approach.
Looking ahead, Pierfrancesco Maran projected that the regulation may eventually be adopted by the end of 2025. He added that a six-year transition period is foreseen for some of the key provisions, allowing sufficient time for industry stakeholders to adapt to the new requirements.
[Note: The compromise text was approved by a large majority in the ENVI-IMCO Committees on the 7th of July with 79 votes in favour, 27 against and 11 abstentions. The Parliament is expected to vote on the deal during the September plenary session before interinstitutional negotiations with the Council can begin.]
Emily Waterfield returned the floor to Arthur Corbin to respond to points previously raised by the MEP, particularly regarding the Single Market and connectivity.
Arthur Corbin began by addressing the current state of the Single Market, citing the European Commission’s new strategy, which is grounded in data from the Draghi Report. He highlighted a striking finding: the Single Market for goods is currently operating at only 50% of its potential due to persistent barriers. In response, he stressed the need for national-level reforms and announced that, after the summer, the European Commission will issue tailored recommendations to all EU member states to address specific shortcomings.
On the topic of connectivity, especially in the context of autonomous vehicles, Mr Corbin referenced the Automotive Action Plan. He explained that the EU executive body is working to improve vehicle connectivity across the EU and plans to collaborate with an industry alliance in order to define clear criteria for a forthcoming memorandum of understanding. This document, he noted, would serve as a foundation for advancing connectivity solutions.
Pierfrancesco Maran MEP aligned with the approach outlined by Arthur Corbin. He referenced both the Letta and Draghi reports, underscoring the need for the European Union to actively support its industrial players. He called on the EU to simplify and streamline regulatory frameworks to facilitate the faster deployment of innovative technologies.
The moderator then invited the MEP to reflect on successful practices implemented in recent years and the challenges that lie ahead.
Mr Maran MEP responded by emphasising that sustainability should not be viewed solely through an environmental point of view, but also as a matter of employment and access to essential services. He noted that the concept of sustainability has evolved into a complex, multidimensional challenge requiring a holistic approach.
Turning to mobility, he acknowledged the continued importance of reducing emissions, but stressed that this must be balanced with broader considerations such as the availability and integration of public transport systems. In this context, he highlighted the potential of autonomous vehicles to support a hybrid model of mobility, combining multiple transport modes in a more efficient, inclusive and user-friendly way.
He concluded by urging a rethinking of existing solutions, stressing that, while emissions reduction remains critical, it must be addressed in tandem with social and economic factors to achieve a genuinely sustainable and equitable transition.
The moderator next invited Raluca Marian to comment on the inclusiveness of the Automotive Action Plan’s Strategic Dialogue.
Raluca Marian acknowledged several positive aspects of the current EU institutions’ approach. She also commended the European Commission for fostering a more integrated and cross-sectoral conversation. In contrast to past practices when regulations on alternative fuels, CO₂ standards and digital infrastructure were developed in isolation, the new strategy aims to bring these elements together and engage a wider range of stakeholders.
She welcomed the Strategic Dialogue’s focus on electric batteries, noting the importance of promoting alternatives to traditional fuels. However, she also highlighted the significant reliance of the commercial road transport sector, especially heavy-duty transport, on diesel. She pointed out that the overwhelming majority of the 35 million light commercial vehicles and 7 million heavy-duty vehicles currently in the EU still runs on petrol or diesel, highlighting the need for viable and scalable alternatives to decarbonise the sector.
Ms Marian expressed her concern that the strategy will remain too narrowly focused on electrification. For road transport operators whose livelihoods depend on vehicle performance and reliability, being limited to a single technological pathway poses risks, she stated and stressed that alternatives should not be restricted to electric batteries and hydrogen fuel cells. Citing a demonstration in which trucks and cars completed a journey powered by renewable fuels, she argued these options were already real, available and scalable, yet largely overlooked in the current EU strategy.
She concluded by warning that the strategy appears to have been shaped around a single technology, thereby marginalising several important stakeholders. For a sector as essential and complex as road transport, a more inclusive and diversified approach is needed.
The moderator asked Raluca Marian whether the technology approach outlined in the Automotive Action Plan reflects a broader EU tendency to promote electrification as the ultimate solution.
Ms Marian stressed that the operational suitability of various decarbonisation solutions depends heavily on context. She acknowledged that electric vehicles may be well-suited for certain applications, such as urban logistics, but cautioned against over-reliance on a single technological pathway. Regardless of what the dominant decarbonisation solution will be, she argued, the transition must address not only decarbonisation, but also energy security and system resilience. She also warned that relying solely on electrification is becoming increasingly risky, especially given that progress in this area has not met initial expectations.
Emily Waterfield then asked whether the Strategic Dialogue on the Future of the Automotive Industry had proven effective in broadening the debate, or whether a more permanent platform might be necessary.
Ms Marian explained that the automotive strategy was indeed accompanied by a Strategic Dialogue that seemed to have ended once the strategy was set. At present, various ongoing discussions, such as those related to the implementation of ETS2 and the Social Climate Fund, are led by different Commissioners, but largely focus on execution, not strategic reconsideration, she specified.
She also observed that the current institutional setup appears geared toward implementing a predetermined strategy rather than reopening the broader debate. Although internal work is underway within the European Commission, such as the review of CO₂ standards for cars, these processes do not involve a wide stakeholder dialogue. In her view, there is currently no dedicated and representative forum to revisit the strategy or to broaden the technological discussion to include viable alternatives beyond electrification.
Turning to Giacomo Migliore, the moderator asked him to provide a general overview of the Action Plan and share recent developments since its release.
Giacomo Migliore began his overview of the Automotive Action Plan by highlighting the significant progress Europe has made in reducing CO₂ emissions. Since 1990, emissions have fallen by roughly 37-38%, largely thanks to improvements in the power sector. He also pointed to a recent European Commission assessment of national energy plans, which suggests Europe is on track to reduce emissions by about 54-55% by 2030 if current policies continue, as a hopeful sign amid ongoing challenges.
Mr Migliore then outlined the main pillars of the Action Plan, each aimed at tackling different aspects of the automotive sector’s transformation. First, he focused on innovation and digitalisation, emphasising the importance of fostering technologies such as autonomous and connected vehicles. The EU is backing this process with substantial investments, such as the Horizon Europe Partnership’s commitment of €350 million to battery research and innovation, he stated. This clearly signals that the European Union intends to be a global leader in developing the next generation of automotive technologies.
Clean transportation was another major theme. Meeting the 2025 CO₂ targets remains a priority, but the EU executive body is also looking beyond that, working to sustain ambition for future emission reductions, he said and added that part of this effort involves accelerating the rollout of recharging infrastructure, especially along clean transport corridors. By closely collaborating with EU member states the European Commission aims to reduce bureaucratic delays in permitting, which have often slowed progress, he stated. Whilst charging infrastructure has outpaced the growth of electric vehicles in recent years, Mr Migliore stressed that further acceleration is still needed to keep pace with rising demand.
He also highlighted the Corporate Vehicle Fleet Initiative, which targets corporate cars, an important focus since these vehicles represent 60% of all new car sales in the EU and tend to rack up higher mileage than private cars. Encouraging the uptake of zero-emission vehicles within this segment could have an outsized impact on reducing emissions and driving market change, he argued.
Supply chain resilience formed the third pillar of the Action Plan, Mr Migliore specified. In May, the Commission published 47 strategic projects targeting critical raw materials with the goal of increasing European extraction to 10%, processing capacity to 40%, and recycling rates to 25%. He also explained that this effort is vital for reducing dependency on external suppliers and ensuring Europe can sustainably source the materials needed for batteries and other clean technologies.
On the social aspect of the matter, Mr Migliore emphasised EU institutions’ commitment to a just transition. The European Fair Transition Observatory is closely monitoring employment shifts, whilst funds such as the European Globalisation Fund and the European Social Fund are actively supporting workers facing layoffs and helping them acquire new skills, he reckoned. This holistic approach acknowledges that sustainability is not just about emissions, but also about citizens and communities, he affirmed.
Finally, the speaker stated that the Action Plan aims to ensure a level playing field as the European Commission continues to take firm action against unfair practices, citing last year’s anti-subsidy measures targeting imports from China as an example.
In terms of recent developments, Mr Migliore also shared that the European Commission will propose extending the exemption that allows EU member states to waive tolls on zero-emission trucks. Since these vehicles currently cost around 2.5 times more than conventional trucks, reducing operational costs is crucial, he stated. This toll exemption will help close the cost gap and encourage wider adoption of zero-emission trucks starting next year, supporting both manufacturers and transport operators in the transition to cleaner technologies.
Overall, Giacomo Migliore painted a picture of a comprehensive and forward-looking strategy that combines technological innovation, infrastructure development, supply chain security, social responsibility and fair competition, an approach designed to keep Europe at the forefront of the global automotive transition, he concluded.
The moderator then turned to Adam McCarthy for him to elaborate on the concept of “Beyond Cars” and to share any recent positive developments from the tyre industry.
Adam McCarthy began by reflecting on the significant progress made over the past five years in tyre-related legislation aimed at improving performance and safety. Thanks to these regulatory efforts, some tyres produced in Europe today rank among the best-performing worldwide. He remarked that a striking safety benefit, noting that improved tyre standards have reduced stopping distances by the equivalent of four car lengths. On the environmental front, these high-performance tyres are contributing to savings of roughly 4 million tonnes of CO₂ emissions each year, a meaningful impact in the fight against climate change, he noted.
However, he also pointed out a persistent challenge within the tyre industry as it remains largely consumer-driven, with about 75% of sales coming from replacement tyres. Due to the fact that car owners typically replace tyres several times over a vehicle’s lifetime, purchasing decisions tend to be influenced mostly by price rather than quality or sustainability criteria. As a result, consumers often overlook the environmental and safety advantages that high-quality tyres offer, he emphasised. This dynamic, Mr McCarthy argued, highlights the need for legislation not only to improve product standards, but also to encourage consumers to make more sustainable choices.
Turning to the broader idea of “Beyond Cars,” Mr McCarthy welcomed the shift in the conversation. Whilst much of the recent Strategic Dialogue has understandably focused on car manufacturers, the automotive ecosystem is far more complex and interconnected. It encompasses the entire value chain from raw material extraction and processing to component suppliers and industries such as tyre manufacturing, he stated.
He also emphasised that the tyre sector shares many of the challenges faced by the wider automotive industry, including competitiveness pressures, rising energy costs and concerns over raw materials’ accessibility. Yet it also holds enormous potential to advance shared objectives around sustainability, mobility and even security.
Mr McCarthy subsequently reminded the audience that tyres are the only part of a vehicle that actually touches the road, as without reliable tyres, citizens would not be able to travel, goods would not be delivered and essential services, such as the transport of medical supplies, would be disrupted. Much like batteries and semiconductors, tyres are also a critical technology underpinning modern mobility, he said and noted that Europe is home to a world-leading tyre industry that produces some of the most advanced products on the global market.
Finally, Mr McCarthy urged that, as Europe charts the future of mobility and shapes the automotive workforce, the “humble tyre” and the industry behind it must not be overlooked as it is a vital piece of the broader mobility puzzle, deserving its place in strategic discussions and policymaking, he concluded.
Picking up on the earlier discussion around the theme of “Beyond Cars,” Emily Waterfield turned once again to Raluca Marian, asking whether she felt the debate had expanded far enough to reflect the full diversity of the transport sector.
Raluca Marian responded by stressing that the type of vehicle ownership and usage plays a critical role in shaping how policies are developed and understood. A “car”, she specified, can be a privately-owned vehicle for personal mobility, a company car provided as part of an employment package or a commercial tool essential to the operation of a business, such as a taxi or delivery van. All of these fall under the label of “car,” yet their usage patterns, economic roles and policy needs greatly differ, she premised.
In this connection, in her view, terminology matters. A single word such as “car” may seem straightforward, but it conceals a great deal of complexity, she continued. When policy debates use catch-all terms without unpacking the nuances behind them, there is a risk of designing one-size-fits-all solutions that fail to account for the real diversity of the road transport sector, she asserted.
Ms Marian then turned to a related issue raised earlier in the discussion, namely the growing interest in demand-side mandates designed to accelerate the uptake of electric vehicles. These typically target fleet operators, whether leasing companies, employers or commercial transport providers, by requiring them to shift to electric vehicles within a set timeframe.
From the perspective of her organisation, such mandates are problematic as this approach effectively forces demand in an artificial way, rather than allowing demand for electric vehicles to grow organically under the right market conditions.
Ms Marian subsequently cautioned that many of the foundational conditions for broader EV uptake, namely affordability, adequate charging infrastructure and operational suitability, are still lacking in much of the commercial transport sector. Imposing regulations on both suppliers and buyers without addressing these preconditions assumes the market will adjust smoothly, she said and warned that this approach risks creating more problems than it solves. Instead of easing the transition, it could simply displace the burden onto another part of the value chain, introducing new and unintended challenges, she stated.
She concluded by calling for a more nuanced and inclusive debate, one that recognises the full spectrum of vehicle types, users and operational needs in shaping Europe’s transport future.
The moderator then turned again to Adam McCarthy, asking him to elaborate on the concept of raw materials in relation to the tyre industry.
Adam McCarthy started his reply by emphasising that raw materials are not limited to the components used in the physical product and include access to resources that support innovation and the development of new business models.
Returning to the more traditional understanding of raw materials, he highlighted a critical but often overlooked fact, namely that nearly all tyres contain natural rubber. As a rule of thumb, the larger the tyre, the more natural rubber it requires, he highlighted and added that, despite this dependency, Europe has no domestic production and is entirely reliant on imports.
Mr McCarthy subsequently stressed that, while metals such as nickel, cobalt and copper, particularly in the context of batteries receive significant attention, rubber deserves equal strategic consideration as it is essential not only for tyres, but also for many other vehicle components, such as seals and gaskets.
He then argued that Europe needs a comprehensive rubber strategy that includes better market intelligence, improved supply chain visibility and proactive trade policies. This would involve building strong, sustainable relationships with rubber-producing countries, particularly in Southeast Asian countries, such as Indonesia and Thailand, as well as diversifying sources through increased use of secondary raw materials and bio-based alternatives.
He concluded by shifting the focus to data, which he described as the “raw material of the future”. In an increasingly connected and digitalised mobility ecosystem, access to data, and the ability to use it effectively, will be just as critical as access to physical raw materials.
The moderator then asked Giacomo Migliore to elaborate on the concept of transport poverty and how the EU is addressing it.
Giacomo Migliore pointed out that the concept of transport poverty was formally defined under the Social Climate Fund regulation and refers to the difficulty of affording transport needed to access essential services such as work, healthcare or education. This issue is especially relevant with the upcoming ETS2 system in 2027, which will put a carbon price on fuels and could disproportionately affect low-income households.
To address this question, the EU has created a €86 billion Social Climate Fund to support vulnerable citizens, including subsidies for public transport or help with buying clean vehicles. The European Commission has also issued recommendations to help identify and assist those who are affected the most, he concluded.
Emily Waterfield relayed a question from the audience to Giacomo Migliore, asking him to explain how the Action Plan is helping and supporting SMEs.
Giacomo Migliore responded by stressing that SMEs play a crucial role in both the automotive and broader transport sectors. In particular, they represent a significant share of transport service providers.
He highlighted that initiatives such as the Alliance for Automotive and Connected Mobility are being developed to bring together diverse industry actors, including start-ups. These smaller companies often offer innovative solutions for connected and sustainable mobility, but require the right regulatory and financial conditions to scale up. He added that supporting them in this way will be vital to ensuring a successful and inclusive green transition.
Giacomo Migliore also highlighted that the Action Plan includes support mechanisms, such as collaborative alliances and R&D funding. He emphasised that SMEs play a crucial role in innovation and service delivery across the transport sector, benefitting from EU partnerships in automation and connectivity.
The moderator then turned to Adam McCarthy with a question from the audience asking are which the main obstacles to scaling circular practices in the tyre sector.
Adam McCarthy firstly acknowledged the complexity of the issue. He explained that the tyre industry is somewhat unique in that, through national extended producer responsibility schemes, it currently collects one end-of-life tyre for every new tyre placed on the market. In fact, the latest data indicates a 104% collection rate, as some additional used tyres are also retrieved.
The primary challenge, he said, lies in recycling capacity as a significant number of tyres are currently exported out of Europe for recycling and further treatment, and this process raises concerns about sustainability and resource retention within the EU.
He then emphasised the need for greater investment in both mechanical and chemical recycling methods, along with shared definitions of these processes. Although the technologies themselves are not new, there is a pressing need to develop the necessary infrastructure, such as recycling pathways, that would enable the recovery and reuse of secondary raw materials. This, he reckoned, would help reduce import dependency and strengthen Europe’s strategic autonomy.
Another key obstacle is the absence of “end-of-waste” criteria for tyres, as the regulatory gap hinders the cross-border movement of end-of-life tyres, complicates the permitting process for recycling facilities, and creates uncertainty around end-use markets for recycled materials, he specified.
Mr McCarthy also highlighted the potential of rubberised asphalt in road construction. This application not only extends infrastructure lifespan, but also reduces noise and emissions from road surfaces. He concluded by stressing that more support at the European level is needed to advance these circular approaches within the tyre industry.
Emily Waterfield then moved to Raluca Marian, asking whether she believes the Strategic Dialogue around the Automotive Action Plan will effectively initiate the transition towards a more sustainable, EU-wide mobility system.
Raluca Marian responded that the dialogue and the resulting Action Plan do indeed bring together a wide range of areas that must be addressed to enable successful electromobility in Europe. While these areas are well identified in the plan, she noted that many are difficult to implement in practice.
For example, although a grid package is expected to be proposed by the European Commission, aligning grid upgrades across the EU will take years, she said and subsequently highlighted the importance of recognising specific charging locations. In the freight and logistics sector, for instance, most of the vehicle charging does not occur on the road but at depots, notably an essential detail that must be supported through adequate infrastructure and planning, she added.
Ms Marian acknowledged that, whilst the Action Plan correctly identifies the improvements needed, this does not mean ready-made solutions exist. The complexity of implementation remains a major challenge, she remarked. Moreover, she pointed out that, for certain alternative technologies, the plan is lacking entirely, leaving significant gaps in the overall approach.
Adam McCarthy also took the floor with a brief remark. He noted that, unsurprisingly, the Automotive Action Plan contains approximately 66 references to batteries and electrification. However, he highlighted that not a single mention is made of the role proper tyre fitting can play in advancing sustainable and safe mobility.
He stressed that equipping the right tyre for the right vehicle can meaningfully contribute not only to safety and sustainability, but also to addressing issues such as energy poverty. According to Mr McCarthy, the EU should broaden the discussion beyond the vehicle itself and consider all the components that make up the wider mobility equation.
The moderator then turned to Giacomo Migliore with a question from the audience inquiring whether the Automotive Action Plan sufficiently addresses heavy-duty vehicles (HDVs), given its strong focus on passenger cars.
Regarding HDVs, Giacomo Migliore acknowledged that the Action Plan is more heavily focused on passenger vehicles due to their larger numbers and nearer-term emission targets. However, he stressed that the plan does recognise the specific challenges facing the heavy-duty sector and seeks to bring together the necessary elements to address them. A recent European Commission report, published in May, explores the market situation and infrastructure gaps for HDVs, he noted.
He concluded by pointing to the Clean Transition Dialogues under the Action Plan, which aim to enhance coordination among Member States and streamline procedures to accelerate the deployment of essential infrastructure, including megawatt charging stations.
Emily Waterfield then took another question from the audience, directed at Giacomo Migliore, regarding the greening of corporate fleets, specifically inquiring about the timeline and how the European Commission envisions the upcoming proposal.
Giacomo Migliore responded that, based on the information he received from colleagues working directly on the file, the proposal is expected by the end of the year. He noted that this timeline had also been discussed in the most recent stakeholder meetings.
Raluca Marian then took the floor, adding that there appears to be a sense of urgency within the European Commission and that the proposal might be launched as early as autumn. However, many details remain unclear, including the scope, the target audience, and even how a “fleet” will be defined, something she described as complex and potentially contentious.
She also noted that, while companies may have larger budgets than private individuals, their motivations are different: private buyers make personal choices, whereas commercial operators must ensure their investments are viable.
The moderator then gave the floor to Adam McCarthy, who offered a broader reflection on the questions previously addressed by Giacomo Migliore and Raluca Marian.
Adam McCarthy noted that, if the EU is moving forward with measures such as the corporate fleet greening proposal to accelerate the uptake of electric vehicles, it presents an opportunity to think more holistically.
He suggested that such legislation could be used not only to promote electrification, but also to improve other vehicle components, such as tyres. Mr McCarthy emphasised that Europe’s tyre industry is already leading in efforts to deliver safety and environmental benefits, and these should be better integrated into the conversation around sustainable mobility.
Emily Waterfield then took another question from the audience about how the Action Plans will address the territorial challenges of regions dependent on automotive manufacturing, specifically asking how job losses in Europe can be avoided. The question referenced the “just transition” concept, comparing it to the coal industry’s decline.
Adam McCarthy replied, noting that, in the previous 18 months, the tyre industry saw nine facility closures and about 5,000 jobs lost largely due to high energy costs. He emphasised the need for measures to reduce production costs and enforce fair market rules to prevent undercutting by non-compliant imports. He also stressed the importance of investing in upskilling workers to handle technological changes such as AI and robotics, which will improve productivity despite higher costs.
Giacomo Migliore added that, from a user perspective, recharging infrastructure must expand beyond major cities to remote areas. From an industry viewpoint, he highlighted plans to set up an observatory to track employment needs and to use the European Social Fund Plus to support workforce training.
Raluca Marian also took the floor to address the just transition. She emphasised that job losses in the sector have far-reaching consequences. On a positive note, she welcomed the European Commission’s strong push to create the conditions for electrification. She then appreciated that many issues raised over time, especially regarding infrastructure, are now being addressed. The European Commission’s work on charging standards, expected by the end of 2025, is an important step that will enable official financing of infrastructure projects.
However, Ms Marian also stressed that financing remains a fundamental challenge. With around one million transport operators in Europe, 80 to 90% of which are small and medium-sized enterprises, affording electric vehicles priced between €75,000 and €400,000 is a major hurdle. Given their thin profit margins, she warned that simply requiring operators to buy these vehicles without addressing affordability will stall the transition.
Do you wish to know more about the issues discussed in this debate? Then check out the selected sources provided below!
Industrial Action Plan for the European automotive sector, European Commission
The Draghi report on EU competitiveness, European Commission
Enrico Letta’s Report on the Future of the Single Market, European Commission
The single market strategy, European Commission
Foreign Affairs Council (Trade), 14 July 2025, European Council
Circular economy action plan, European Commission
Circular economy: new EU rules to make the automotive sector more sustainable
ETS2: buildings, road transport and additional sectors, European Commission
Social Climate Fund, European Commission
European Partnerships in Horizon Europe, European Commission
Greening corporate fleets, Legislative Train Schedule, European Parliament
The economic impact of the EU tyre manufacturing industry, Oxford Economics Report
IRU Position on CO2 standards for heavy-duty vehicles, International Road Union (IRU)
