The European automotive industry in danger
Stéphane Séjourné, French Haut-Commissaire and executive vice-president of the Commission européenne, in charge of prosperity and industrial strategy, is sounding the alarm. He even wrote in an alarmist op-ed published by Le Monde: "The auto industry is in mortal danger."
The Commissioner uses this formula again and drives the point home by bringing the 13 million employees in the sector working on the continent aboard this Titanic. In fact, the best defender of the car industry is Donald Trump! He is even the best lobbyist!
Because, since his decision on April 2 (postponed by 3 months) to tax cars imported to the États-Unis at 25%, the automotive world has been in a feverish stir.
Nothing to reassure manufacturers who export about 650,000 vehicles to the USA. Furthermore, with inflation, the prices of new cars have skyrocketed. Equipment manufacturers are calling for the promotion of made in Europe, but also to postpone the end of internal combustion engines beyond 2035.
The double penalty and the hope of a reconsideration
The sector is lobbying Bruxelles, citing a double penalty: being forced to suffer these famous American taxes, but also the obligation to face the 2035 deadline. Could this deadline be called into question? Nothing is less certain, but e-fuel type fuels could be authorized, as in Allemagne.
However, this fuel is still very expensive and will only target a certain elite. The pressure from Washington may play into the hands of European manufacturers, providing a powerful argument for Europe to protect them better and push back future deadlines even further.
An action plan under surveillance
Certainly, the Commission européenne wants to get the automotive industry back on track. Flexibility on CO2 emissions, greening of corporate fleets, support for battery production in Europe... However, this action plan lacks precise elements, especially since Europe will continue to support the development of electric vehicles!
Yet, with this plan, the Commission seems to be leaving its naivety behind, protecting the sector and giving it the opportunity to become more competitive. This delights Sarah Knafo, European Member of Parliament: "Thank you for leaving your naivety (...). The Commission has been completely wrong for 40 years, and everything it has done must be undone. It is time to take action."
While the automotive industry was a local economy for a long time, this has no longer been the case for 15 years, with production relocations to Eastern European countries, Turquie and Maroc. A rout of the automotive industry reflected in a trade deficit of over 9 billion. Un imbalance amplified by electrification. Meanwhile, the Chinese wave is progressing slowly but surely. Hard-pressed, European manufacturers are seeking to minimize their production and supply costs to offer models at attractive prices.
Bernard Bertucco Van Damme