EU chief launches ‘personal’ initiative to help Europe’s struggling car industry, on which millions of jobs rely

The President of the European Commission listed saving the European automotive sector among the priorities of her second term, which will focus on revitalizing the European Union’s economic competitiveness.

“Europe’s automotive industry is a European pride. Millions of jobs depend on it,” she told EU lawmakers gathered in Strasbourg to give the green light to her new team.

“We must ensure that the future of cars continues to be made in Europe.”

To that end, 66-year-old von der Leyen said she would convene a “strategic dialogue on the future of the automotive industry” in the EU.

This will bring key players in the sector to the table “to develop solutions together as this industry undergoes profound and disruptive change,” she said.

The European automotive industry has been plunged into crisis by high manufacturing costs, a stuttering transition to electric vehicles (EV) and increasing competition in the key market of China.

Sales of electric vehicles have been slower than expected at a time when carmakers are grappling with stricter EU rules on CO2 emissions.

German car giant Volkswagen is set to impose a sweeping cost-cutting measure and has warned it could close factories in Germany for the first time in its history – just one of many announced cuts by carmakers and suppliers.

Last month, EU countries approved the imposition of high import tariffs on Chinese-made electric vehicles, saying Beijing’s state aid to automakers was undercutting European automakers.

The EU Parliament approved von der Leyen’s new Commission on Wednesday with 370 votes in favour, 282 against and 36 abstentions.