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2025 | OriginalPaper | Chapter

5. Bringing the European Union Back in the Automobile Sector After the Covid Crisis

Authors : Samuel Klebaner, Sigfrido M. Ramírez Pérez

Published in: Global Shifts in the Automotive Sector

Publisher: Springer Nature Switzerland

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Abstract

The Covid-19 pandemic exposed the vulnerabilities of the European automotive sector, accelerating the need for structural changes and strategic policy shifts. The European Union's response has been multifaceted, focusing on enhancing economic resilience, promoting electrification, and addressing geopolitical tensions, particularly with China and the US. The chapter explores the EU's post-Covid policy line, which aims to accelerate the twin transitions of electrification and digitalisation through instruments such as Important Projects of Common European Interest (IPCEIs). However, it argues that pre-existing industrial policy contradictions, such as targeted CO2 regulation leading to upmarket drift, have been reinforced by the lack of a broad, coordinated industrial policy framework. The chapter also delves into the EU's trade position vis-à-vis China, highlighting the debates and potential consequences of a protectionist stance. It provides a comprehensive overview of the recent transformations in the EU's automotive policies, offering insights into the challenges and opportunities that lie ahead for the sector.
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Footnotes
1
The statistics used in this section come from the yearly European Association of Car Manufacturers (ACEA)’s Pocket Guides (ACEA, 2018, 2019b, 2020, 2021, 2022, 2023) when no other sources are cited.
 
2
Data in this paragraph comes from The ICCT (2022).
 
3
Volkswagen, Mercedes-Benz, Audi, BMW, Skoda, Seat.
 
4
Renault, Peugeot, Citroën, Nissan, Opel, Fiat, Dacia.
 
5
Toyota, Hyundai, Kia, Suzuki.
 
6
According to Pardi (2022), the upmarket drift is the consequence of the European regulations. However, several facts confirm that the EU regulations were not the starting point, but rather a catalyst. For example, we can track the upmarket drift back to the 2000s (Jullien & Lung, 2011), before the adoption of the mandatory CO2 regulations. We might also mention the case of Toyota, which has been producing small and competitive cars in Europe, following a high-volume strategy rather than a high-margin strategy.
 
7
Battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), as well as hybrid and alternative fuel vehicles.
 
8
For an in-depth analysis of the GEAR 2030, see Klebaner & Ramirez-Pérez (2022).
 
9
Namely the European association of Automobile Manufacturers (ACEA), the European lobbies of automobile suppliers (CLEPA), distributors (CECRA), tyre producers (ETRMA), industrial battery suppliers (EUROBAT) and motorcycles (ACEM) as well as European social partners representing both employers (CEEMET) and trade unions (IndustriAll Europe).
 
10
All subsequent quotes in this section come from the common letter sent to the European Commission by the above-mentioned stakeholders and available at CLEPA’s website (CLEPA, 2023).
 
11
This correlation does not concern regenerative braking.
 
12
The Consortium for Ultra Low Vehicle Emissions is a consortium of scientists and industrial experts mandated by the European Commission to produce expert advice on emissions.
 
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Metadata
Title
Bringing the European Union Back in the Automobile Sector After the Covid Crisis
Authors
Samuel Klebaner
Sigfrido M. Ramírez Pérez
Copyright Year
2025
Book
Global Shifts in the Automotive Sector

Print ISBN: 978-3-031-80640-7

Electronic ISBN: 978-3-031-80641-4

Copyright Year: 2025

DOI
https://doi.org/10.1007/978-3-031-80641-4_5

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