The Socialists and Democrats in the European Parliament call on the European Commission to be extremely cautious with any changes to EU legislation on the automotive industry. According to them, such changes should only support the implementation of the existing rules and not reopen the debate on the existing legislative framework. This call comes during the EP plenary debate on the Action Plan on the automotive industry, presented by the European Commission. According to the S&D Group, electrification is clearly the most cost efficient decarbonisation pathway for the automotive industry, and 2035 has to remain the target year when the last vehicles with internal combustion engines will be produced in Europe.

Mohammed Chahim, vice-president of the S&D Group for the Green Deal for industry, energy and climate, and financing the just transition, said:

“The European Commission has to stick to the target we all agreed on - 2035 has to remain the year when the last new vehicles with internal combustion engines will be produced in the EU. The EU has to become a strong home market for zero-emissions vehicles (ZEV) and boost the incentives of Europeans in order to have more ZEV vehicles on our streets. Our group is convinced that regulatory stability and clarity will allow for investment certainty and help us keep the EU automotive sector at the forefront of technological innovation. 

“Supporting the just transition is of key importance for the EU car industry. Automotive manufacturers have to be an object of social conditionality and we are disappointed the European Commission ignores this matter in its Action Plan. If a car manufacturer wants to use European or national funding in order to facilitate the transition to a climate-neutral economy, it has to include measures to promote social dialogue and collective bargaining. EU financial support should not be granted to companies that do not comply with the applicable working and employment conditions resulting from EU or national labour law, or the relevant collective agreements. 

“We have to ensure the technological sovereignty of the EU. Today’s vehicles are unthinkable without software. For this goal, we have to avoid overreliance on non-EU providers. We have to boost our own digital infrastructures including cloud computing, connectivity, security, and hardware and software capacities. As many batteries for EU vehicles have to be produced in the EU, we welcome the objectives of the Commission to increase this number by 2030.

“If we want to see more zero-emissions vehicles on our streets, we have to make them more attractive and affordable to Europeans. This can be achieved through Social Leasing Schemes as well as fiscal and non-fiscal incentives for buyers. It is pity that the Commission does not say anything about the creation of a European instrument to this end in its Action Plan. Instead, the Commission relies solely on a recommendation to member states to take measures and reduce the so-called ‘transport poverty’. We believe that setting up a European Social Leasing Scheme for electric cars would be a key initiative that could provide a socially progressive solution for disadvantaged Europeans, while also creating new markets for the European automotive industry.”