MEPs split on how to halt European car factory closures
- Volkswagen has announced potential plant closures in Germany, and Audi's EV factory in Brussels faces uncertainty.
- MEPs have differing views on the causes of the automotive sector's struggles, with some blaming EU climate rules and others pointing to management failures.
- There is a shared agreement among MEPs on the need to protect European carmakers from foreign competition, particularly from China.
Europe's automotive industry is facing significant challenges due to a decline in electric vehicle (EV) sales and increasing competition from China. Volkswagen has announced potential plant closures in Germany, marking a critical moment for the company. The future of Audi's EV factory in Brussels is also uncertain, with no new models planned for production in the coming years. Members of the European Parliament (MEPs) have expressed concern over the situation, acknowledging the sector's struggles. Different MEPs attribute the issues to various factors. Some argue that the EU's stringent climate rules, which aim to phase out carbon-emitting vehicles by 2035, are detrimental to the industry. Others believe that the management of carmakers is at fault, criticizing their lack of focus on developing affordable electric vehicles. Meanwhile, some MEPs emphasize the need for national support and infrastructure expansion to promote EV adoption. There is a consensus among MEPs on the necessity to protect European carmakers from foreign competition, particularly from subsidized Chinese manufacturers. They advocate for measures to support the industry and ensure its sustainability in the face of external pressures. The Draghi report has been received with cautious optimism, as it proposes a sector-specific EU industrial plan to address the lack of coherent planning in the automotive sector. MEPs agree on the importance of regulatory predictability and coherence to foster a stable environment for the industry’s growth and adaptation to climate targets.