The European automotive industry has fallen behind technologically – both in terms of automated driving and electromobility. To counter the resulting crisis, the European Commission launched the Industrial Action Plan for the European Automotive Sector on 5 March 2025. With the action plan, the Commission aims to future-proof the European automotive industry through innovation, decarbonisation and digital transformation.

AK welcomes that the current challenges are to be addressed through active industrial policy. However, the action plan does not sufficiently address the issue of a just transition. Although it sends out the right initial signals, for example with regard to skills development, the expansion of European value chains and the emphasis on social dialogue, it remains non-binding on key social policy issues and is underfunded. As a result, the social dimension of the transformation risks falling behind the economic goals.