ETRMA joins call to stimulate European auto industry

BRUSSELS—The European Tyre & Rubber Manufacturers' Association has joined an "urgent call" to transform and enhance the competitiveness of the European automotive industry.

In a letter to the president of the European Commission, along with seven other signatories from the automotive value-chain, ETRMA called for prioritizing six "key actions" to stimulate the industry.

The Sept. 6 letter urged the EC to develop a "robust industrial strategy," scale up a European zero-emission market and battery value-chain, and ensure a stable and coherent regulatory environment for the sector.

Furthermore, the Commission was urged to enhance "the skills agenda" and the "Just Transition framework," improve transport affordability and ensure "a global level playing field" for the European automotive industry.

The letter signatories said China provided as "a telling example" of a targeted industrial strategy supporting "a globally competitive, domestic auto industry in electromobility."

The U.S. Inflation Reduction Act (IRA), the industry bodies added, also showed that a robust industrial policy framework can trigger "hundreds of billions in private investment."

"The EU must develop a robust industrial strategy that guarantees a level playing field (outside and within the EU), provides a stable investment environment and fosters a competitive automotive industry," they argued.

The letter urged "a strong response to the U.S. IRA to boost investment in the European battery value-chain and other components. Europe should reduce dependency on critical parts of the value-chain from third countries."

The regulatory framework for batteries, drivetrains, recyclability and a circular economy "must be clear, coherent, and stimulate investment in Europe... and (be) complemented with a robust hydrogen strategy."

According to the automotive industry groups, current "fragmentation" of the European Union regulatory framework was creating "uncertainty that undermines investment and weakens market demand."

The EU, therefore, should complete the "single market," including the recharging and refueling infrastructure as well as electricity and remove barriers for cross-border trade.

Furthermore, the letter urged the EC to ensure that mobility is "affordable and sustainable" for all, while the industry is intensifying its efforts to produce affordable vehicles and services.

The signatories also called for diversification of the supply of raw materials in the EU as a "central pillar" of the region's trade strategy.

This, it said, should include the ratification of existing trade agreements and the negotiation of raw-materials partnerships.

The letter was signed by leaders of the ETRMA; European Automobile Manufacturers' Association; Motorcycle Industry in Europe; European Union Automotive Dealers and Repairs Association (CECRA); European Tech & Industry Employers (CEEMET); European Association of Automotive Suppliers (CLEPA); Association for European Automotive and Industrial Battery Manufacturers (EuroBat) and the IndustriALL trade union.