SERNAUTO positively assesses the EU Automotive Package as a turning point, but notes it falls short of addressing the sector’s critical challenges
The Spanish Association of Automotive Suppliers (SERNAUTO) positively assesses the first step taken by the European Commission with the adoption of the Automotive Package on 16 December, as it marks a turning point by introducing greater flexibility in the scope of the 2035 decarbonisation targets.
The regulatory package allows plug-in hybrid vehicles, range extenders and internal combustion engine vehicles to remain on the market beyond 2035. It also adjusts the climate target, shifting from full CO₂ neutrality to a 90% reduction by that year. The remaining 10% may only be covered through compensation mechanisms, such as the use of low-carbon steel, synthetic fuels or biofuels. In line with the statements of the European Association of Automotive Suppliers (CLEPA), this represents a constructive step and is consistent with the EU’s climate objectives, but it is also a complex and potentially costly solution, from which only a limited subset of companies will be able to benefit.
SERNAUTO considers that the package does not adequately address the critical situation currently faced by European automotive suppliers, driven by increasing competition from outside the EU, the low penetration of electric vehicles manufactured in Europe, high energy costs, a complex regulatory framework and increasingly constrained margins, among other factors.
The measures proposed and known to date are complex and do not sufficiently respond to the scale of the industrial crisis affecting the European automotive sector, nor do they provide clear guarantees to safeguard competitiveness, production and skilled employment.
Moreover, the package does not provide sufficient clarity or certainty for European consumers, nor does it sufficiently reinforce the demand-side stimulus that is urgently needed to revitalise the market.
The 2035 and 2040 climate targets remain the reference framework and are not in question. The real challenge lies in defining a pathway that makes it possible to achieve these objectives without triggering the loss of essential parts of the value chain.
The automotive supplier industry, which accounts for 75% of the value of a vehicle, has been investing for decades in Research, Development and Innovation (R&D&I) to continuously improve vehicle efficiency. This reflects the sector’s strong commitment to the EU’s decarbonisation objectives. However, support measures and incentives are needed to ensure company competitiveness and the region’s strategic autonomy.
Furthermore, SERNAUTO believes that European local content must be placed at the core of the European Union’s industrial policy, directly linked to competitiveness and supply chain resilience. Without robust European local content policies, there is a real risk of losing investment and employment across the entire value chain.
Looking ahead to the forthcoming legislative development of the Industrial Accelerator Act, SERNAUTO calls for climate ambition to be aligned with clear industrial safeguards that ensure competitiveness, investment and employment in the European automotive sector.
Achieving these objectives will require going beyond regulation. It is essential to implement measures that stimulate investment and innovation in the sector, with strong supply- and demand-side incentives, tax frameworks that support the transition, and firm backing for European industrial production.
SERNAUTO will continue to work actively alongside CLEPA to promote the measures the automotive supplier industry needs to strengthen its competitiveness.
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