European car suppliers have issued a sharp warning to the authorities, demanding support for the industry, otherwise production facilities may leave the continent.
"Since up to 75% of the value of automotive components is produced in Europe, the automotive supply industry on the continent creates significant economic value and supports hundreds of thousands of jobs," the European Automotive Suppliers Association (CLEPA) said in a statement. "Nevertheless, European car suppliers are issuing a serious warning based on a recent study of value creation in Europe: without urgent and decisive EU action, the continent risks losing its industrial base, hundreds of thousands of jobs, and its ability to lead the way in clean mobility and innovation."
A new Roland Berger study commissioned by CLEPA highlights that European suppliers face cost deficits of 15-35%, mainly due to high energy and labor costs, regulatory burdens, and system fragmentation. Meanwhile, countries such as China and the United States combine measures to support industry with protective mechanisms, creating structural weaknesses and unfair competition, the association argues.
According to the study, without urgent EU action by 2030, up to 23% of European value added will be at risk due to the cumulative effect of switching to powertrains and shifting costs outside the EU. In practice, Europe may face the loss of up to 350,000 jobs, which will lead to a decrease in both employment and the broader social contribution of the industry, Kallanish notes.
"Europe is in a decisive battle for its industrial sovereignty," says Benjamin Krieger, Secretary General of CLEPA. "Suppliers strive to invest and innovate, but they cannot do so under unequal conditions. Maintaining a competitive and sustainable automotive ecosystem in the EU will require urgent market action by industry and targeted policy measures aimed at increasing Europe's attractiveness as a place for manufacturing, research and development, and investment."
This includes addressing key location-related factors such as electricity prices and regulations. It is also considering the policy of ensuring local production in cars in the EU to preserve know-how and production capacity, he adds.
Suppliers employ 1.7 million people in Europe and invest 30 billion euros ($35 billion) annually in research and development. Thus, the CLEPA calls on policy makers to act promptly.
