Monitoring of the transition challenges and territorial solutions in the automotive sector.
Date: 2025-10-29
Institutions: Commission for Territorial Cohesion Policy and EU Budget, Elrington, Samuel, Mattiuz, Dianela, Nicolet, Adrien
Subjects: Just transition, action programme, industrial policy, investment, land transport, motor vehicle industry, regional policy, report, social policy, sustainable mobility, transport policy

Commission for
 Territorial Cohesion Policy
 and EU Budget

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Monitoring of the 
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© European Union, 2025   
Partial  reproduction  is  permitted,  provided  that  the  source  is  explicitly 
mentioned.   
More information on the European Union and the Committee of the Regions is 
available  online  at  http://www.europa.eu  and  http://www.cor.europa.eu 
respectively  

QG-01-25-088-EN-N; ISBN 978-92-895-3956-2; doi: 10.2863/8494581  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
This report was written by Adrien Nicolet, Maria Rodrigues, Daniela 
Mattiuz (Panteia), Roberto Zani (Tplan), Samuel Elrington, Emmanuel 
Hassan  (Ramboll) 

It does not represent the official views of the European Committee of the 
Regions  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
  
  
  
 
 
Executive Summary 

is  undergoing  a  profound 
industry 
The  European  automotive 
transformation,  shaped  by  rapid  digitalisation,  the  shift  to  electrification, 
and  intensifying  global  competition.  While  these  changes  provide  new 
opportunities for innovation, sustainability, and competitiveness, they also pose 
severe  risks  for  regions  heavily  dependent  on  automotive  production  and 
employment.  The  European  Commission’s Action  Plan  for  the  Automotive 
Sector, published in March 2025, seeks to address these challenges across five 
key pillars: Innovation and Digitalisation, Clean Mobility, Competitiveness and 
Supply Chain Resilience, Skills and Social Dimension, and Market Access and 
Supportive Business Environment. 
This study commissioned by the Committee of the Regions, seeks to evaluate 
the  regional  dimension  of  the  Action  Plan.  Drawing  on  desk  research  and  a 
survey  of  26  automotive  regions,  it  explores  the  territorial  impacts  of  the 
automotive  transition,  assesses  the  strategic  relevance  of  the  Action  Plan,  and 
proposes recommendations for its implementation towards a just and regionally 
inclusive approach. 

Current state 
The European automotive sector remains under intense strain as it navigates 
the transition. After two years of modest post-COVID recovery, production fell 
by 6.2% in 2024, with severe declines in Italy (–43%), Belgium (–31%), Hungary 
(–14%), and France (–12%). Over 54,000 jobs were lost in 2024—ten times more 
than the number of jobs created—highlighting structural vulnerabilities. Still in 
2024,  investment  in  electric  mobility  reached  its  lowest  level  since  2019, 
reflecting  weak  consumer  demand  and  policy  uncertainty.  New  battery 
gigafactories are  emerging in France, Spain,  and Finland but  they  remain 
concentrated  in  a  few  locations  and  are  insufficient  to  offset  the  broader 
slowdown. Adoption of electric vehicles  also remains highly uneven across 
Europe.  Northern  countries—driven  by  high  incomes,  strong  environmental 
awareness  and  supportive  policies—are  leading,  while  much  of  Southern  and 
Eastern Europe  still reports  EV  shares below  2%. Beyond immediate market 
pressures,  the  sector  must  adapt  to  stricter  carbon-neutral  manufacturing 
requirements,  volatile  raw-material  supplies,  and  changing  consumer 
behaviour. Together, these dynamics highlight a transition that is fragile, uneven, 
and  territorially  differentiated,  underscoring  the  need  for  coordinated  EU-level 
action and place-based regional support. 

Regional perspectives on the Action Plan 
The situation in European automotive regions confirms the broad strategic 
relevance of all five pillars of the Action Plan, but also reveals differentiated 

 
 
 
 
priorities.  Competitiveness  and  supply  chain  resilience  is  seen  as  the  most 
pressing  challenge,  followed  by  clean  mobility  and  workforce-related  issues. 
Regional  stakeholders  stress  the  urgent  need  for  domestic  battery  production, 
recycling facilities, and stronger upstream supply chains to reduce dependence on 
imports. They also underline the importance of affordable charging infrastructure, 
social support for workers, and simplified regulatory frameworks to navigate both 
EU rules and international competition. At the same time, significant barriers 
remain:  limited  industrial  capacity,  financial  constraints,  shortages  of 
technical skills, and bottlenecks in permitting and grid connections. Regional 
authorities can directly address and mitigate these issues, which is why their active 
role  is  essential  to  bridge  the  gap  between  EU  ambition  and  on-the-ground 
delivery. 

Regional initiatives and gaps 
European  regions  are  actively  complementing  the  Action  Plan  with  their 
strategies, though the scope and depth vary widely. Stakeholders interviewed 
in  various  regions  reported  several  examples.  In  innovation  and  digitalisation, 
regions like Baden-Württemberg and the Basque Country have invested in open-
source software collaborations, digital twin research, and AI applications, while 
Lombardia  has  explored  3D  printing  for  automotive  parts.  On  clean  mobility, 
examples  include  hydrogen  bus  retrofits  in  Haute-Normandie,  charging  and 
hydrogen  infrastructure  programmes  in  Bavaria  and  Baden-Württemberg,  and 
comprehensive mobility plans in Catalonia and the Basque Country. 
For competitiveness and supply chain resilience, several regions are advancing 
battery  technology  and  recycling.  Steiermark  has  promoted  battery  safety 
initiatives,  BasqueVolt  is  developing  solid-state  batteries  and  expanding 
dismantling and recycling networks. In the area of skills and social dimension, the 
Basque  Country  and  Baden-Württemberg  stand  out  with  specialised  training 
programmes, awareness campaigns, and coordinated reskilling dialogues that go 
beyond what the EU plan envisages. 
These efforts illustrate how regions are already advancing EU goals, often 
going  beyond  what  the  Action  Plan  envisages.  This  reinforces  why  regional 
leadership and innovation should be recognised and systematically supported. 
However, many regions lack initiatives in crucial areas such as infrastructure 
deployment, recycling facilities, and trade support, and where projects exist, 
they often face barriers such as limited funding capacity. 

Recommendations for a just transition 
Ensuring a fair and  effective automotive  transition  requires  action on  two 
levels: EU-wide support and regional implementation.  

EU-wide support: 

 
 
 
 
 
•  Regulatory clarity and pragmatism, especially regarding the 2035 ICE ban, 
is  essential  to  reduce  uncertainty  around  emission  targets  and  rules  of 
origin, allowing industry and regions to plan with confidence.  

•  Funding  instruments  must  become  more  accessible,  with  simplified 
procedures,  greater  technical  assistance,  and  co-financing  schemes  that 
reduce barriers for less wealthy regions and SMEs.  

•  Industrial strategies such as the Battery Booster Package should be closely 
tied to regional development policies, ensuring that large-scale investments 
are not concentrated in a handful of locations but spread across the EU to 
strengthen resilience.  

Regional implementation: 

•  Regional  authorities  should  play  a  central  role  in  operationalising  the 
transition.  They  can  facilitate  permitting,  site  identification,  and  land 
allocation for recycling and gigafactory projects, while supporting cluster-
based cooperation between OEMs, suppliers, and research institutions.  
•  Regional  skills  roadmaps  linked  to  projected  industrial  shifts  should  be 
established,  ensuring  that  training  systems  anticipate  rather  than  react  to 
labour market disruptions. Early warning systems based on data from the 
European  Fair  Transition  Observatory  can  help  identify  at-risk  groups, 
allowing  retraining  and  social  support  to  be  deployed  before  job  losses 
occur.  

•   Authorities  should  integrate  clean  mobility  into  broader  sustainable 
mobility strategies, aligning with EU goals but adapting to local contexts 
such  as  rural  accessibility,  cross-border  transport  corridors,  or  industrial 
specialisations. 

For both the EU and its regions, targeted support for SMEs in complying with 
regulatory changes and in accessing export markets will be essential to ensure that 
smaller  players  are  not  excluded  from  the  transition.  It  is  by  combining 
competitiveness  with  inclusiveness,  and  industrial  strength  with  social 
protection, that Europe will deliver a truly just and sustainable automotive 
transition. 

 
 
 
 
 
Table of contents 

1 
1.1 
1.2 

2 
2.1 
2.2 

3 
3.1 
3.2 
3.3 
3.4 
3.5 
3.6 

4 
4.1 
4.2 
4.3 

Introduction 
Overview of the Action Plan 
Aim of the study & methodology 

State of the transition in the automotive sector 
Employment levels 
Investment and adoption of EVs 

The Action Plan under regional lenses 
Survey among automotive regions in Europe 
Innovation and digitalisation 
Clean mobility 
Competitiveness and supply chain resilience 
Skills and social dimension 
Market access and supportive business environment 

The regional dimension of the Action Plan 
Regional priorities 
Regional add-ins 
Regional dimension of a just automotive transition 

Annexes 

1 
1 
2 

5 
5 
8 

12 
12 
14 
18 
23 
26 
29 

33 
33 
39 
44 

49 

 
 
 
 
 
 
 
 
 
1  Introduction 

The automotive industry stands at a pivotal moment in its history. This vital sector 
of European economy is undergoing profound structural change driven by major 
forces: digitalisation, shift toward electrification and autonomous mobility, and 
global  competition.  These  transformations  offer  significant  opportunities  for 
innovation  and  sustainability,  but  they  also  present  considerable  challenges—
particularly for the regions that have historically relied on the automotive sector 
for  economic  and  social  stability.  With  declining  production,  employment  and 
competitiveness, the European automotive sector is considered very strained1. 

In  response  to  these  challenges,  the  Strategic  Dialogue  on  the  Future  of  the 
Automotive Industry has been launched in January 2025. In high-level discussion 
with President von der Leyen, 22 key players of the automotive sector (including 
the  major  OEMs)  shared  their  views  on  areas  requiring  urgent  attention. 
Moreover,  four  Working  Groups  were  held  in  February  2025  focusing 
respectively  on  Clean  Transition,  Industrial  Value  Chain,  Technological  and 
Digital Innovation, and Skills and Social considerations. Finally, a meeting was 
organised between the Automotive Regions Alliance (ARA) and Commissioner 
Tzitzikostas as part of the Strategic Dialogue. 
As a result of these consultations, the European Commission published the Action 
Plan for the Automotive Sector on 5 March 2025. This strategic initiative seeks 
to  reinforce  the  sector’s  competitiveness  while  supporting  its  transition  to  a 
greener  and  more  digital  future.  The  following  section  provides  a  concise 
overview of the plan’s key pillars and measures. 

1.1  Overview of the Action Plan 

The European Commission’s Action Plan for the Automotive Sector sets out a 
strategic  framework  to  safeguard  the  EU’s  global  leadership  in  the  face  of 
profound  technological,  environmental,  and  competitive  shifts.  The  strategy  is 
built on five pillars: 

1. Innovation & Digitalisation: Regain leadership in autonomous and connected 
vehicles  by  harmonising  EU  regulations,  creating  large-scale  cross-border 
testbeds,  and  establishing  the  European  Connected  and  Autonomous  Vehicle 
Alliance. This will drive development of shared software platforms, AI solutions, 

1 European Commission (2025) Mapping the impact of industrial decline on European regions. 

1 

 
 
 
 
and next-generation battery technologies, supported by Horizon Europe funding 
and investment programmes like TechEU. 

2.  Clean  Mobility:  Strengthen  zero-emission  mobility  through  revised  CO₂ 
standards, incentives such as social leasing schemes  for vulnerable consumers, 
corporate fleet decarbonisation, and accelerated charging/hydrogen infrastructure 
deployment, including the European Clean Transport Corridor initiative. 

3.  Competitiveness  &  Supply  Chain  Resilience:  Launch  a  Battery  Booster 
package  to  scale  up  domestic  battery  manufacturing  and  materials  refining, 
support  recycling  infrastructure,  and  enforce  resilience  criteria  for  component 
production. The aim is  to achieve  over  50% of European value creation  in  the 
battery supply chain by 2030. 

4.  Skills  &  Social  Dimension:  Establish  a  European  Fair  Transition 
Observatory, amend funding mechanisms (ESF+, EGF) for faster worker support, 
and fund large-scale reskilling through Erasmus+. 

5. Level Playing Field & Economic Security: Secure fair trade via updated rules 
of origin, trade defence measures (e.g., against unfairly subsidised EV imports), 
and  strategic  foreign  investment  conditions.  The  plan  also  promises  regulatory 
simplification to reduce burdens on industry. 

The  Action  Plan  is  fundamentally  a  pan-European  industrial  strategy,  with 
measures  designed  to  harmonise  regulations,  foster  cross-border  infrastructure, 
and build industry-wide alliances across Europe. Implementation will involve key 
stakeholders, including EU institutions, Member State governments, automotive 
manufacturers  and  suppliers,  financial  institutions  such  as  the  European 
Investment Bank, and social partners. 

1.2  Aim of the study & methodology 

While the implementation of the Action Plan primarily involves EU institutions, 
Member States and global industry players, a just automotive transition can only 
happen  by coupling the  evolution of the  automotive industry with the  regional 
economic landscape and social growth. For this reason, the implementation of the 
plan  calls  for  a  strong  regional  dimension,  and  tailored  solutions  addressing 
territorial  specificities,  both  in  terms  of  challenges  and  opportunities.  This 
concern has been raised by the Automotive Regions Alliance in September 2025 
at  their  annual  conference2.  Therefore,  the  present  study,  “Monitoring  of  the 
transition  challenges  and  territorial  solutions  in  the  automotive  sector”, 
examines the regional realities of the automotive industry across the EU. Through 

2 Automotive Regions Alliance (2025) Munich Declaration. 

2 

 
 
a  combination  of  desk  research  and  a  survey  of  the  regional  stakeholders,  the 
study provides an assessment of the territorial dimension of the Action Plan and 
its implementation in European automotive regions. 

By  integrating  quantitative  data,  qualitative  insights,  and  direct  input  from 
regional stakeholders, this report evaluates how well the Action Plan is serving 
the local level. Furthermore, it proposes practical recommendations for improving 
its implementation and offers suggestions for addressing the regional dimension 
of a global automotive transition challenge. 

The present study builds on the earlier report State of play and future challenges 
of  automotive  regions3,  which  mapped  the  sector’s  territorial  footprint  and 
highlighted  the  uneven  distribution  of  risks  and  opportunities  across  Europe. 
Indeed, the automotive industry in Europe is clustered in several regions across 
the  EU,  where  it  plays  a  central  role  in  the  local  economy,  employment,  and 
innovation. In these regions, the successful transition of the automotive industry 
is  crucial,  not  only  for  meeting  climate  and  industrial  goals,  but  also  for 
safeguarding the long-term attractiveness, competitiveness, and prosperity of the 
territories involved4. Recognising the disparities in how this automotive transition 
affects  different  parts  of  the  EU,  the  European  Committee  of  the  Regions 
established the Automotive Regions Alliance in 2022 in order to bring together 
regional and local authorities from areas with a strong automotive presence and 
to highlight the importance of finding placed-based solutions. 

This  report  aims  to  support  the  Committee  of  the  Regions  by  responding  to  a 
series of research questions and providing insights into:  

•  What is the state of play of the transition in the EU automotive regions? 

How has the situation evolved in the last year?  

•  Which measures of the Action Plan would provide support to automotive 
regions? How could they be better implemented to achieve their transition?  
•  How  regional  stakeholders  most  concerned  by  the  change  in  drive-train 
technology could mitigate the negative socio-economic effects and remain 
competitive in a changed automotive industrial eco-system?  

•  What  are  leverages  of  Local  and  Regional  Authorities  regarding 
employees’  training  and  qualifications,  demand  side  stimulation,  and 
deployment of alternative fuels infrastructure? 

The first question is addressed through desk research presented in Section 2. To 
answer the remaining questions, a survey was conducted to capture how regional 
stakeholders across Europe are responding to the challenges facing the automotive 

3 European Committee of the Regions (2024) State of play and future challenges of automotive regions. 
4 Ibidem. 

3 

 
 
 
 
 
sector, and to evaluate the extent to which targeted actions have been implemented 
to support these industries. 

The  survey  served  as  a  key  instrument  for  collecting  input  from  regional 
authorities  across  the  EU,  aiming  to  evaluate  the  specific  impacts  of  this 
transformation at the regional level and to determine which aspects of the EU’s 
Action  Plan  are  most  relevant  in  different  contexts.  In  addition  to  identifying 
priority areas for action, the survey aimed to uncover the main barriers faced by 
regional  stakeholders  in  aligning  with  EU-level  goals,  and  to  collect  practical 
examples of good practices and local initiatives already underway. These insights 
will  inform  evidence-based  recommendations  to  ensure  a  fair  and  inclusive 
automotive transition for the European society. 

4 

 
 
 
 
2  State of the transition in the automotive 
sector 

After  two  years  of  post-Covid  recovery5,  the  European  automotive  production 
experienced a 6.2% decline in 2024 compared to 20236. At the country level, only 
Spain and Czechia experienced a growth in production, while all other countries 
saw their production shrinking in 2024. Italy has been heavily affected with a 43% 
decline,  followed  by  Belgium  (31%),  Hungary  (14%),  and  France  (12%).  The 
heavy  shrinking  of  Italian  production  is  driven  by  the  decline  of  Stellantis 
production. In particular, the plants of Mirafiori (Piemonte) and Modena (Emilia-
Romagna) experienced production drops of 70% and 79% respectively7. This is 
due to weak demand for EVs, the competition of Chinese manufacturers and the 
regulatory  uncertainty  regarding  subsidies  and  climate  targets8.  European 
automotive suppliers do not see a brighter situation in the future, as 60% of them 
expect the market to shrink by the end of 20259. 

2.1  Employment levels 

Because of the decreasing production volumes, automotive suppliers announced 
more  than  54,000  job  cuts  in  2024  (ten  times  higher  than  the  number  of  jobs 
created that year)10. Moreover, the production remains 3 million units below pre-
Covid  levels11.  Figure  2.1-1  shows  the  evolution  of  employment  in  European 
regions until the pandemic and since the pandemic. 

Until the pandemic, most regions were experiencing job creations: particularly in 
Eastern  Europe  and  Spain.  But  since  the  pandemic,  there  is  a  decline  in 
employment in the whole European Union. This is not only affecting traditional 
automotive regions, but also the whole Eastern Europe. The majority of these job 
losses are caused by internal restructuring to cut costs and remain competitive, 
nevertheless almost a fourth of these losses are due to closures or bankruptcies 
since 202012. Table 2-1 lists the major closures and reported openings of factories 
compared to the list presented in the precedent study by the Committee  of the 
Regions13, while Figure 2.1-2 highlights their location. 

5 ACEA (2024) The Automobile Industry Pocket Guide 2024/2025. 
6 ACEA (2025) Economic and Market Report Global and EU auto industry: Full year 2024. 
7 Reuters (2025) Stellantis Italy output falls 37% in 2024, car production hits 68-year low. 
8 CE Interim (2025) Italy’s Auto Crisis: Stellantis Output Drops 37%. 
9 McKinsey (2025) European automotive industry: What it takes to regain competitiveness. 
10 CLEPA (2025) Data digest #18 Job losses escalate as demand stays below expectation. 
11 Ibidem 
12 CLEPA (2025) Data digest #20 Factory closures overshadow EU’s mobility transition. 
13 European Committee of the Regions (2024) State of play and future challenges of automotive regions. 

5 

 
 
 
Figure 2.1-1: Regional evolution of employment in the automotive sector before 
Covid (left) and after (right) 

Source: authors, based on Eurostat Structural Business Statistics (SBS) data by NUTS 2 regions and commodity 
group "Manufacture of motor vehicles, trailers and semi-trailers" (NACE rev C29) 

Table 2.1-1: Major closures and openings of automotive plants since January 2024 

Event 
Closure 

Company 
Navya 
Northvolt 
Stellantis 
VDL Group 
Volkswagen 

Opening  ACC 

Hispano Suiza 
Sin Cars 
Skeleton 
Thyssenkrupp 
Verkor 

City, NUTS2 Region (country) 
Vénissieux, Rhône-Alpes (France) 
Skellefteå, Övre Norrland (Sweden) 
Aspern, Vienna (Austria) 
Born, Limburg (Netherlands) 
Forest, Brussels (Belgium) 
Billy-Berclau, Nord-Pas de Calais (France) 
Montmeló, Cataluña (Spain) 
Giurgiu, Sud-Muntenia (Romania) 
Varkaus, Pohjois-ja Itä-Suomi (Finland) 
Herrlisheim, Alsace (France) 
Grenoble, Rhône-Alpes (France) 

Source: authors, based on ACEA (2024) Interactive map – Automobile assembly and production plants in 
Europe; European Committee of the Regions (2024) State of play and future challenges of automotive regions 

6 

 
 
 
 
 
Figure 2.1-2: Location of major closures and openings of automotive plants 

Source: authors, based on ACEA (2024) Interactive map – Automobile assembly and production plants in 
Europe; European Committee of the Regions (2024) State of play and future challenges of automotive regions 

The  closures  of  VDL  Group  factory  in  the  Netherlands  and  the  Volkswagen 
factory in Belgium each impacted more than 3,000 employees: the former was 
producing brands BMW and Mini14, the latter is an Audi factory15. The battery 
cell  manufacturer  Northvolt  closed  its  main  plant  in  Skellefteå  due  to 
insolvability,  affecting  900  employees16.  Finally,  nearly  600  employees  are 
impacted in total by the closure of the autonomous shuttle factory of Navya in 
Vénissieux17 and the closure of the manual gearbox factory operated by Stellantis 
in Aspern18. 

In the Netherlands, VDL Nedcar reduced its workforce by nearly 2000 employees 
in  March  2024,  retaining  only  around  450  staff.  A  social  plan  provided 
outplacement  assistance,  financial  arrangements,  and  internal  redeployment 
opportunities 
In  Belgium, Audi 
approximately 
Brussels closed  its  Q8  e-tron  plant  in  February  2025,  affecting

redundant19. 

those  made 

support 

to 

14 NOS Nieuws (2024) Laatste beetje hoop op toekomst VDL Nedcar vervliegt. 
15 RTBF (2025) Fermeture d’Audi. 
16 Electrive (2025) Northvolt discontinues production at its main plant in Sweden. 
17 Les Nouvelles de Vénissieux (2023) Navya proche de la sortie de route. 
18 Kronen Zeitung (2024) Opel plant in Aspern closes for good on Friday. 
19 Nieuws VDL Mast Solutions (2023) VDL Nedcar to reduce number of employees by 2,000 by 1 March 2024.  

7 

 
 
 
 
 
 
3,000 employees. The agreed social plan included voluntary company bonuses, 
outplacement and coaching services, and specific age-related support for workers 
over 6020. 

Half of the openings in Table 2-1 concerns battery manufacturers (ACC in Billy-
Berclau21,  Skeleton  in  Varkhaus22,  and  Verkor  in  Grenoble23):  ACC  supplies 
Stellantis and Mercedes, Skeleton is a super-battery manufacturer, and the site of 
Verkor is intended for R&D operations. Sin Cars, a Bulgarian EV manufacturer, 
opens a light e-van factory in neighbouring Romania24. The Thyssenkrupp factory 
in  Alsace  supplies  ICEs  for  the  Mercedes  factory  of  Rastatt  in  neighbouring 
Germany25, while the opening in Montmeló is a design and innovation centre26. 

ACC’s gigafactory in Billy-Berclau, established by the Stellantis–Mercedes–Saft 
joint  venture,  currently  employs  around 600  people,  is  actively  hiring  with 
projections of reaching roughly 800 employees by 2025 and 2,000 direct jobs by 
203027. Verkor's Dunkirk gigafactory is expected to generate about 1,200 direct 
jobs  and  3,000 
In 
Alsace, Thyssenkrupp is establishing an internal combustion engine supply unit 
for  Mercedes  in  Herrlisheim,  targeting  around 150  jobs  over  three  years29. 
Meanwhile,  the  Montmeló  opening  does  not  currently  have  public  numbers 
specific 
tech  hub  ecosystem 
though  Catalonia’s  broader 
generated 6,191 jobs in 202430. 

two  years of  operation28. 

jobs  within 

this  site, 

indirect 

to 

2.2  Investment and adoption of EVs 

Despite  the  multiple  openings  of  battery  factories,  EV-related  investments 
plummeted in 2024 to reach their lowest level since 2019 at 5.64 billion euros31. 
This is again due to the weak demand for EVs. In fact, Europe mostly attracts 
investments  from  European  carmakers,  with  largest  investments  benefitting 
Germany and Spain32. 

Regarding  the  fleet,  EVs  represent  more  than  half  of  the  alternative  fuelled 
vehicles in circulation (Figure 2.2-1). Regarding the other fuels, 40% of vehicles 

20 Audi MediaCenter (2025) Audi Brussels: social plan agreed. 
21 Le Journal des Entreprises (2024) ACC lève près d’un milliard d’euros pour l’extension de sa gigafactory dans 

22 Yle (2024) Varkauden akkutehtaalle suunnitteilla miljoonainvestointi ja uusia työpaikkoja. 
23 L’usine nouvelle (2023) Verkor inaugure en grande pompe son centre d’innovation dédié aux batteries 

le Pas-de-Calais 

électriques à Grenoble. 

24 Seenews (2022) Bulgarian EV maker Sin Cars to expand production to Romania. 
25 Dernières Nouvelles d’Alsace (2023) Thyssenkrupp crée 150 emplois en Alsace pour des moteurs Mercedes. 
26 Interempresas (2025) Hispano Suiza inaugura su box permanente en el Circuit de Barcelona-Catalunya 
27 ACC (2025) Billy-Berclau Gigafactory.  
28 Reuters (2024) Verkor gets over 1.3 bln euros in financing for Dunkirk EV battery gigafactory. 
29 Ground news (2023) Herrlisheim. Thyssenkrupp creates 150 jobs in Alsace for Mercedes engines.  
30 Barcelona Digital City (2025) Jobs generated by international tech hubs in Catalonia up by 22%. 
31 CLEPA (2025) Data digest #18 Job losses escalate as demand stays below expectation. 
32 Transport & Environment (2024) Carmaker’s EV investments: Is Europe falling behind? 

8 

 
 
 
 
 
use Liquefied  Petroleum Gas (LPG), 7% use Compressed  Natural  Gas  (CNG), 
while the use of Liquefied Natural Gas (LNG) and Hydrogen (H2) remains very 
limited. The share of Battery-Electric Vehicles (BEV) and Plug-in Hybrid Electric 
Vehicles (PHEV) are 30% and 20% respectively. 

Figure 2.2-1: Share of alternative fuels used by vehicles in circulation in 2024 

Source: authors, based on European Commission (2025) European Alternative Fuels Observatory 

At the regional level, the rate of EV adoption varies greatly. Figure 2.2-2 shows 
the share of EV in the total fleet per region. The highest EV shares are found in 
Sweden, Denmark, The Netherlands, and Luxembourg. In the study of Möring-
Martínez et  al. (2024), these  countries stand out with their high environmental 
awareness coupled with high GDP per capita33, which can explain these figures. 
Austria, Western  Germany and the North of Belgium also have  a higher share 
than the rest of the European regions, where the EV rate remains mostly below 
2%. 

33 Möring-Martínez, Senzeybek, Jochem (2024), Clustering the European Union electric vehicle markets: A 

scenario analysis until 2035 in Transportation Research Part D. 

9 

 
 
 
 
 
 
Figure 2.2-2: Regional share of electric vehicles (EV) in 2023 

Source: authors, based on Eurostat Stock of electric vehicles by category and NUTS 2 region 

2.3  Broader developments affecting the sector 

In addition to the challenges directly addressed in the Action Plan, the automotive 
sector is facing broader developments that may affect production, supply chains, 
and the market. 

On  the  production  side,  manufacturing  is  increasingly  influenced  by  carbon-
neutral  goals.  Governments  and  consumers  demand  cleaner  production: 
manufacturers are expected to adopt greener processes, reduce waste and improve 
efficiency, but the shift may come at the cost of higher operational expenses34. 
Lifecycle assessments are also becoming part of this transformation. They allow 
manufacturers  to  evaluate  the  environmental  footprint  of  products  throughout 
their  entire  lifespan,  which  pushes  OEMs  to  design  lower-impact  vehicles  and 
components. Carrying out such assessments, however, requires data and expertise 
that are not always readily available35. On top of these developments, regulations 
on  zero-emission  manufacturing  are  tightening.  Altogether,  these  dynamics 

34 Itonics (2025) Automotive industry trends. 
35 Capgemini (2023) Sustainability in automotive: from ambition to action. 

10 

 
 
 
 
 
illustrate  a  manufacturing  sector  in  transition, where sustainability,  innovation, 
and adaptation play a central role. 

Regarding supply, export restrictions on critical materials are reshaping supply 
chain strategies. China is limiting the export of rare earths and battery metals, and 
manufacturers  are  increasingly  aware  of  their  dependence36.  Besides  China, 
Europe  is  also  becoming  increasingly  dependent  on  countries  like  Turkey  and 
Morrocco37. To mitigate this risk, companies need to explore diversification and 
recycling, though these  options require time and significant investment. At the 
same time, volatility in raw material prices is adding uncertainty to planning on 
top of trade wars and tariffs. These pressures highlight the urgent need for resilient 
and forward-looking supply strategies in the automotive sector. 

Finally,  some  demand  trends  may  influence  the  market  in  the  coming  years. 
Consumers are becoming more attentive to the total cost of ownership, including 
not only purchase but also insurance, maintenance and fuel costs. This leads to 
the  development  of  financially  competitive  shared  mobility  options38,  raising 
questions for manufacturers relying on sales39. Moreover, economic downturns 
often reduce new vehicle demand while  increasing the  appeal of  lower-cost  or 
second-hand  alternatives.  These  trends  show  how  mobility  services,  cost 
pressures, and economic cycles are transforming vehicle markets and challenging 
manufacturers to adapt. 

36 Reuters (2025) Snapshot of China's critical mineral export controls. 
37 Cresti et al. (2025) Vulnerabilities and capabilities in the EU Automotive industry: Leveraging Input-Output 

Analysis and Economic Complexity. 

38 Kunsmann & Latmathe (2025) Car ownership versus carsharing? An analysis comparing socio-economic and 

policy factors of carsharing and car ownership in Case Studies on Transport Policy. 

39 Supply Chain Digital (2025) Supply Chain Issues and Market Shifts Challenge Automakers. 

11 

 
 
 
 
 
3  The Action Plan under regional lenses 

This  section  presents  an  evaluation  of  the  Action  Plan  for  the  European 
automotive sector, focusing on how its key pillars align with regional needs and 
priorities. The assessment explores the strategic importance of each of the five 
pillars from a regional perspective. It considers the relevance of the Action Plan’s 
specific actions under each pillar, identifies ongoing regional initiatives related to 
them,  and  highlights  some  of  the  challenges  encountered.  By  doing  so,  the 
analysis aims to provide an overview of how the Action Plan can integrate the 
regional dimension in navigating the evolution of the European automotive sector 
towards a just and inclusive transition. 

3.1  Survey among automotive regions in Europe 

In order to assess the strategic importance of the Action Plan’s pillars, a survey 
was distributed among regional authorities (a detailed description can be found in 
Annex IV). The survey focusses on the following key areas: 
•  The relevance of specific EU actions to the region; 
•  Existing or planned regional initiatives; 
•  Implementation needs and challenges; 
•  Potential for sub-national implementation; 
•  Use of funding instruments and support mechanisms; 
•  Capacity gaps and stakeholder coordination. 

The target group includes regional authorities, where the automotive industry has 
a strong presence. This included members of the Automotive Regions Alliance 
(ARA)  and  non-ARA  regions.  These  stakeholders  are  directly  involved  in  or 
impacted by the restructuring of the automotive industry and are best placed to 
provide  relevant  regional  insights.  The  survey  was  distributed  to  39  ARA 
members and 12 non-ARA members. In total, 26 responses were received after 
data cleaning (Figure 3.1-1). 

12 

 
 
 
Figure 3.1-1: Geographical distribution of respondents 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

Overall,  the  survey  results  reflect  a  diverse  industrial  landscape,  with  many 
regions engaged in multiple types of vehicle production. Passenger car production 
is  the  most  prevalent  type  of  automotive  manufacturing  activity  among  the 
regions, with 20 respondents indicating￼Figure- 3.1￼). Light commercial vehicles 
follow with 13 responses, production of heavy-duty vehicles as well as buses and 
coaches  were  reported  in  11  regions.  In  addition,  5  respondents  indicated 
involvement  in  other  types  of  vehicle  production,  including  agricultural 
machines), motorcycles, campers, and trains.  

Figure 3.1-2: Types of vehicles produced 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 
Note: “Other” includes Special vehicles (agricultural machines), motorcycles, campers, and trains. 

13 

 
 
 
 
 
 
The survey results also indicate that many regions are engaged at multiple levels 
of the automotive supply chain, emphasising the interdependence of the European 
automotive manufacturing landscape. Component production by tier 2 suppliers 
is  the  most  reported  activity,  with  24  respondents  indicating  involvement, 
underscoring the central role of parts manufacturing (Figure 3.1-3). This is closely 
followed by subassembly production at the tier 1 level, reported in 22 regions. 
Final assembly activities by original equipment manufacturers (OEMs) are also 
well represented, with such operations indicated in 18 regions, highlighting the 
presence of end-product manufacturing facilities. In addition, involvement in raw 
material supply at the tier 3 level is reported in 11 regions, suggesting upstream 
integration and the strategic importance of materials sourcing in some regional 
economies. 

Figure 3.1-3: Automotive supply chain components 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

3.2  Innovation and digitalisation 

The pillar of Innovation and Digitalisation focuses on strengthening the European 
automotive  sector’s  capacity  to  innovate  and  adapt  to  the  rapid  digital 
transformation  of  the  industry.  It  recognises  that  future  competitiveness  will 
depend  on  the  ability  to  lead  in  the  development  and  deployment  of  software-
enabled,  AI-powered  connected  and  autonomous  vehicles.  The  pillar  aims  to 
support  the  industry  in  advancing  these  technologies,  fostering  research  and 
innovation, and building the necessary digital infrastructure and skills base. 

14 

 
 
 
 
 
3.2.1  Strategic importance and implementation 

Survey results indicate that a majority of regional authorities view the Innovation 
and Digitalisation pillar as highly relevant to their strategic objectives, with 11 
out of 20 rating it as “very strategic” and an additional 6 considering it “strategic” 
(Figure 3.2-1). Only 3 respondents regarded it as “partially strategic”, highlighting 
the  importance  of  this  pillar  across  the  surveyed  regions.  In  terms  of 
implementation,  13  regional  authorities  reported  having  “ongoing  initiatives” 
related to innovation and digitalisation, while 3 have “planned initiatives” and 2 
indicated  that  relevant  actions  are  “under  discussion”.  Only  one  respondent 
reported having no initiatives in this area. 

Figure 3.2-1: Strategic importance of the Innovation and Digitalisation Pillar per region 
(left) and presence of initiatives related to Innovation and Digitalisation Pillar (right) 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

3.2.2  Regional relevance of Actions under the Innovation and Digitalisation pillar 

The survey responses indicate a generally high level of relevance attributed to the 
proposed  Actions  under  the  Innovation  and  Digitalisation  pillar,  though  with 
some variation across specific Actions. The Action considered most relevant is 
support for research and innovation in connected  and  automated  mobility  and 
next-generation battery technology through Horizon Europe, with 11 out of 16 
respondents rating it as “highly relevant” and none considering it not relevant or 
uncertain (Figure 3.2-2). This highlights strong regional interest in continued EU-
level R&I support to drive technological advancement. 

15 

 
 
 
 
 
 
 
 
Figure 3.2-2: How relevant are the following actions under the Action Plan (innovation 
and digitalisation pillar) to your region’s needs, priorities, or strategic objectives? 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

Actions focused on regulatory development and market integration also received 
strong  support,  with  7  respondents  rating  it  as  “highly  relevant”  and  6  as 
“relevant”, highlighting a clear demand for consistent rules to advance innovation 
and  digitalisation.  Investment-related  measures  such  as  the  deployment  of  the 
TechEU investment programme in collaboration with the EIB Group and private 
sector  is  also  considered  relevant,  with  12  respondents  rating  it  either  “highly 
relevant” or “relevant”. This indicates a need to support scale-ups and strengthen 
strategic value chains, particularly in battery technology. 

The  establishment  of  large-scale  cross-border  testbeds  received    more  mixed 
feedback compared to other actions, recording the highest number of not relevant 
(2) and somewhat relevant (3) responses. The Review of the Motor Vehicle Block 
Exemption  Regulation  (MVBER)  received  the  largest  number  of  “don’t  know” 
responses (6). This suggests limited awareness or a lower perceived relevance at 
the regional level, possibly due to the technical nature of the regulation or a lack 
of clarity regarding its implications. 

16 

 
 
 
 
 
The main factor influencing the relevance of these actions is the industrial base of 
the region, in particular the regional level in terms of research and development. 
In  regions  with  a  well-established  R&D  landscape  and  existing  innovation 
clusters,  the  actions  may  be  implemented  more  rapidly,  whereas  others  may 
require  more  support.  Regarding  the  cross-border  testbeds,  the  geographical 
position of the region plays a role in the potential application of the measure (e.g. 
Grand-Est in France and Baden-Württemberg in Germany). 

3.2.3  Challenges in implementing Innovation and Digitalisation actions 

Regional stakeholders face a range of challenges in implementing innovation and 
digitalisation  initiatives  in  the  automotive  sector.  Legal  and  regulatory 
uncertainty  is  reported  as  the  most  significant  barrier,  with  14/16  respondents 
classifying it as either a “significant” or “moderate barrier” (Figure 3.2-3). This 
underscores  the  need  for  clearer  and  transparent  regulation.  Insufficient  co-
funding  or  matching  capacity  was  identified  as  a  major  constraint,  with  7 
respondents  rating  it  as  a  “significant  barrier”  and  4  as  a  “moderate  barrier”, 
pointing to persistent difficulties in mobilising the necessary financial resources 
to  complement  EU  funding.  Skills  shortages,  particularly  in  AI,  software 
development,  and  cybersecurity,  were  also  prominent,  with  6  respondents 
identifying them as a “significant barrier” and 5 more as “moderate”. 

Figure 3.2-3: Challenges limiting ability to engage with or benefit from Innovation and 
Digitalisation actions 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

17 

 
 
 
 
Limited access to EU funding programmes such as Horizon Europe and TechEU 
is another commonly reported issue, cited as a “significant” or “moderate barrier” 
by  11  respondents,  indicating  that  while  funding  exists,  accessing  it  remains  a 
challenge  for  many.  Similarly,  the  lack  of  targeted  innovation  instruments  at 
national or regional level was noted by 12 respondents as a barrier of moderate or 
higher severity, suggesting the need for better-aligned support mechanisms across 
governance  levels.  Meanwhile,  issues  like  limited  regional  engagement  in  EU 
initiatives  and  restricted  access  to  vehicle  or  infrastructure  data  were  less 
frequently  viewed  as  significant,  but  still  noted  by  several  respondents,  as 
moderate or minor barriers. 

3.3  Clean mobility 

The Clean Mobility pillar supports the decarbonisation of road transport in line 
with the EU’s goal of climate neutrality by 2050, which requires a 90% reduction 
in  transport  emissions40.  It  focuses  on  accelerating  the  deployment  of  zero-
emission vehicles (ZEVs) as a key driver of this transition, while also enhancing 
the global competitiveness of European OEMs. As ZEVs gain an increasing share 
of  the  global  automotive  market,  it  is  essential  that  European  industry  regains 
technology and product leadership in this area. A key component of this pillar is 
the development of a strong home market for ZEVs, supported by the widespread 
deployment  of  charging  and  refuelling  infrastructure  across  all  regions.  Clean 
Mobility  therefore  integrates  climate,  industrial,  and  infrastructure  policy 
objectives  to  ensure  both  environmental  progress  and  long-term  economic 
resilience for the European transport sector. 

3.3.1  Strategic importance and implementation 

The survey results indicate that the Clean Mobility pillar is regarded as a strategic 
priority among European automotive clusters. Half of the respondents consider is 
to be “very strategic”, 8 “strategic”, and only 2 see it as “partially” or “marginally 
strategic”  (Figure  3.3-1).  In  terms  of  activity,  12  out  of  20  respondents  report 
having “ongoing initiatives” aligned with this pillar, with 1 indicating a “planned 
initiative” and 4 stating that relevant initiatives are currently “under discussion”. 
Two respondents report having no initiatives in this area, and one was unsure.  

40 European Commission (2025), Industrial Action Plan for the European automotive sector. 

18 

 
 
 
Figure 3.3-1: Strategic importance of the Clean Mobility Pillar per region (left) and 
presence of initiatives related to Clean Mobility Pillar (right) 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

3.3.2  Regional relevance of Actions under the Clean Mobility pillar 

Survey  responses  show  a  generally  high  level  of  relevance  assigned  to  the 
proposed actions under the Clean Mobility pillar. Actions that support the roll-out 
of  charging  infrastructure  and  consumer  incentives  received  strong  backing. 
Notably,  the  availability  of  EUR  570  million  under  the  Alternative  Fuels 
Infrastructure  Facility  was  among  the  most  highly  endorsed,  seen  as  either 
“highly relevant” or “relevant” by all respondents (Figure 3.3-2). These results 
highlight clear stakeholder interest in both regulatory clarity and financial support 
to drive fleet transition and infrastructure deployment.  

19 

 
 
 
 
Figure 3.3-2: How relevant are the following actions under the Action Plan (Clean 
Mobility pillar) to your region’s needs, priorities, or strategic objectives? 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

The  proposal  to  amend  CO₂  emission  standards  for  cars  and  vans  (including 
2025–2027  flexibility)  received  strong  support,  with  12  out  of  13  respondents 
rating  it  as  either  "highly  relevant"  or  "relevant”.  This  amendment  gives  more 
flexibility for the regional stakeholders and allows for a realistic pathway and for 
time to support the transition. However, certain stakeholders would like a more 
extended review of the CO₂ targets (e.g. the 2035 ICE ban) to account for the low-
speed deployment of EVs. The acceleration of the review of CO₂ performance 
standards for cars and vans was seen as “relevant” by 11 respondents, reinforcing 
the urgency of updating key regulatory frameworks to match evolving market and 
technology  conditions.  Other  actions  receiving  strong  support  include  the 
legislative initiative to decarbonise corporate fleets, considered “highly relevant” 
or “relevant” by 12 respondents. 

Several  technical  measures,  particularly  those  concerning  grid  connection  and 
charging infrastructure, were viewed as moderately to strongly  relevant.  These 
include the guidance on shortening grid connection procedures which received 9 
positive responses (4 “highly relevant and 5 “relevant”), the guiding principles on 
anticipatory  grid  investments  and  support  for  Member  States  in  implementing 

20 

 
 
 
 
AFIR and EPBD (1 “highly relevant and 8 “relevant”), and measures to support 
frameworks  for  smart/bi-directional  charging  (6  “relevant”  and  6  “somewhat 
relevant”). 

A few actions, while not viewed as irrelevant, did receive lower engagement. The 
review  of  the  Car  Labelling  Directive  saw  the  lowest  proportion  of  “highly 
relevant” or “relevant” responses (only 3 in total), with 8 respondents selecting 
“somewhat relevant” and 2 choosing “don’t know”, suggesting limited perceived 
impact or familiarity. 

Some  prerequisites  for  the  implementation  of  the  Actions  differ  significantly 
between regions (e.g. their location on a corridor, the presence of OEMs, network 
planning). For example, the proposed Actions are highly relevant if they are in 
synergy with the regional green policies, but they are difficult to implement if the 
local policy frameworks are under-developed. 

3.3.3  Challenges in implementing Clean Mobility actions   

The  survey  responses  highlight  a  range  of  challenges 
the 
implementation  of  the  Clean  Mobility  pillar.  The  most  significant  challenge 
reported  is  delays  or  bottlenecks  in  grid  connection  and  capacity  for 
infrastructure deployment, which 7 respondents rated  as  a  “significant  barrier” 
and 5 as a “moderate barrier” (Figure 3.3-3). This points to concerns around the 
capacity of existing grid infrastructure to keep pace with  the 
of 
charging networks required for ZEV adoption. 

deployment 

impacting 

21 

 
 
 
 
 
Figure 3.3-3: Challenges limiting ability to engage with or benefit from Clean Mobility 
actions 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

Insufficient  recharging  or  refuelling  infrastructure  also  represents  a  challenge, 
with 6 respondents citing it as a “significant barrier” and 5 as a “moderate barrier”, 
reinforcing the view that infrastructure remains an issue in the transition to clean 
mobility,  in  particular  outside  of  cities  and  transport  corridors.  Similarly,  low 
consumer affordability and limited uptake of ZEVs was highlighted as an obstacle, 
receiving 6 "significant" and 6 "moderate" barrier ratings. This reflects ongoing 
market challenges around the cost and accessibility of zero-emission options for 
private and commercial users, especially in rural areas which have high mobility 
needs. Incentives are key to reduce the affordability gap. 

Financial and administrative barriers were also identified as a challenge. Limited 
access to EU or national funding mechanisms such as AFIF, RRF or ERDF was 
seen as a “moderate barrier” by 7 respondents, while insufficient co-funding or 
matching  capacity  at  the  regional  level  was  seen  as  a  “moderate  barrier”  by  8 
respondents,  suggesting  that  even  where  funding  opportunities  exist,  securing 
local  match  funding  remains  difficult.  Skill  shortages  are  also  considered  a 
challenge,  with  2  respondents  citing  this  as  a  “significant  barrier”  and  8  as  a 
“moderate  barrier",  indicating  a  concern  for  workforce  readiness  for  clean 
mobility roll-out. 

In contrast, some challenges are perceived as less significant. Limited stakeholder 
engagement  and  gaps  in  clean  fleet  adoption  were  largely  seen  as  minor  or 

22 

 
 
 
 
 
moderate  barriers,  and  lack  of  supportive  local/regional  policy  frameworks 
received the most varied responses: while 5 respondents rated it as a moderate 
barrier, 3 viewed it as no barrier at all, and none rated it as significant. 

3.4  Competitiveness and supply chain resilience  

The  Competitiveness  and  Supply  Chain  Resilience  pillar  addresses  the 
competitiveness of the European automotive sector in the transition to ZEVs, with 
a particular focus on supply chain resilience. Europe is at risk of losing market 
share due to limited capabilities in vehicle technology and a significant cost gap 
in the production of critical components, notably batteries. Batteries represent 30–
40% of the value-added of a typical electric passenger car, making them a key 
determinant of future industrial competitiveness, employment, and value creation 
in the automotive sector41. This section assesses the role of supply chain resilience 
in safeguarding the competitiveness of the European automotive sector. 

3.4.1  Strategic importance and implementation 

The survey results indicate that the Supply Chain Resilience Pillar is a significant 
strategic priority among European automotive clusters. Among the respondents, 
17/20 consider it to be “very strategic" and 3 see it as “strategic” (Figure 3.4-1). 
In terms of activity related to this pillar, 14/19 report having “ongoing initiatives”, 
and the other 5 indicate either that initiatives are “planned” or “under discussion”. 

Figure 3.4-1: Strategic importance of the Competitiveness and Supply Chain Resilience 
Pillar per region (left) and presence of initiatives (right) 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

41 European Commission (2025), Industrial Action Plan for the European automotive sector. 

23 

 
 
 
 
 
3.4.2  Regional relevance of Actions under the Competitiveness and Supply Chain 
Resilience Pillar 

Based on the survey responses, respondents generally view the proposed actions 
under the Competitiveness and Supply Chain Resilience pillar as relevant to their 
region. The introduction of resilience and sustainability criteria for key vehicle 
components was rated “relevant” or “highly relevant” by 15 out of 16 respondents, 
signalling strong support for embedding resilience and environmental standards 
into  automotive  supply  chains  (Figure  3.4-2).  In  addition,  a  Comprehensive 
“Battery  Booster”  Package  emerged  as  a  clear  priority,  with  14  respondents 
rating it as “highly relevant” or “relevant”. This reflects strong support for policy 
efforts to accelerate domestic battery production. 

Figure 3.4-2: How relevant are the following actions under the Action Plan 
(Competitiveness and Supply Chain Resilience pillar) to your region’s needs, priorities, 
or strategic objectives? 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

Actions  aimed  at  supporting  recycling  are  considered  relevant  to  automotive 
clusters.  Both  financing  support  for  end-of-life  vehicles  and  battery  recycling 
facilities and further support to enhance recycling were rated as “highly relevant” 
or  “relevant”  by  14  and  15  respondents,  respectively.  This  indicates  a  clear 
recognition  of  recycling  as  a  strategic  lever  for  improving  resource  efficiency, 

24 

 
 
 
 
 
reducing reliance on imported materials, and strengthening the resilience of the 
automotive supply chain. 

In  addition,  there  is  a  strong  backing  for  facilitating  joint  private  sector 
investments  into  the  upstream  value  chain,  with  13  respondents  marking  this 
action as either “highly relevant” or “relevant”. This highlights the role of public-
private  cooperation  in  developing  raw  material  sourcing  and  production 
capabilities in Europe. 

The relevance of these Actions depends on the strength of the regional supplier 
base,  in  particular  the  presence  of  battery  manufacturing  companies  and 
automotive component facilities in the region. The main need from the regions is 
to  get  investment  in  upstream  value  creation  (i.e.  raw  materials  and  upstream 
capacities) to move towards resilient and sustainable structures. This can come in 
the  form  of  financial  support  for  SMEs  to  meet  the  energy  efficiency  and 
recyclability  requirements  or  of  subsidy  programmes  to  strengthen  battery 
production. Another key factor for the success of these Actions is the availability 
of industrial land (e.g. for recycling or dismantling facilities) in the region. 

3.4.3  Challenges in implementing Competitiveness and Supply Chain Resilience 
actions   

the 
The  survey  responses  highlight  a  range  of  challenges 
implementation  of  the  Competitiveness  and  Supply  Chain  Resilience  pillar.  A 
major  challenge  is  the  limited  industrial  capacity  for  battery  or  component 
manufacturing,  identified  as  a  “significant”  or  “moderate  barrier”  by  12/16 
respondents (Figure 3.4-3), highlighting the difficulty to scale up production in 
some regions. Similarly, gaps in raw material availability and refining capacity 
were rated as a barrier by 11 respondents, pointing to persistent vulnerabilities in 
upstream supply chains and domestic production.  

impacting 

25 

 
 
 
 
 
Figure 3.4-3: Challenges limiting ability to engage with or benefit from Competitiveness 
and Supply Chain Resilience actions 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

Financial constraints also feature, with limited access to EU or national funding 
and  insufficient  co-funding  or  matching  capacity  for  large-scale  investment 
projects highlighted as barriers by 10 respondents. These reflect the difficulties 
that regional actors and private investors face in accessing or leveraging public 
funding mechanisms. 

Skills  shortages,  specifically  in  battery  production,  industrial  automation,  and 
clean-tech  manufacturing,  were  identified  as  a  barrier  by  12  respondents.  This 
points to a potential workforce gap that could impede future industrial scaling and 
innovation. In addition, infrastructure-related challenges are present. Insufficient 
access  to  industrial  sites  or  enabling  infrastructure  (e.g.  permitting,  land 
availability,  utilities)  and  the  lack  of  regional  recycling  or  circular  economy 
infrastructure are seen as a barrier by 8 respondents. These findings suggest that 
logistical and permitting hurdles continue to limit project implementation at the 
regional level. 

3.5  Skills and social dimension 

The  Skills  and  Social  Dimension  pillar  focuses  on  the  workforce-related 
challenges and transformation within the European automotive sector. This pillar 
addresses key issues such as employment trends, skills development, workforce 
demographics, and social impacts arising from the transition. In recent years, the 

26 

 
 
 
 
automotive  industry  has  been  affected  by  global  shocks,  including  changes  in 
production and demand. This has led to employment disruptions across the EU, 
with further job losses being projected in the near future42. A major concern under 
this  pillar  is  the  growing  shortage  and  mismatch  of  skills  within  the  industry, 
which hampers its ability to adapt to technological advancements and changing 
market  demands.  This  underscores  the  need  for  reskilling  and  upskilling  the 
sector’s workforce. 

3.5.1  Strategic importance and implementation 

The  survey  results  indicate  that  the  Skills  and  Social  Dimension  Pillar  is  a 
significant  strategic  priority  among  European  automotive  clusters.  Among  the 
respondents,  13/20  consider  it  to  be  “very  strategic",  5  as  “strategic”  and  2  as 
“partially strategic” (Figure 3.5-1). In terms of activity related to this pillar, 12/19 
reported  having  “ongoing  initiatives”,  and  the  other  7  indicating  either  that 
initiatives are “planned” or “under discussion”. 

Figure 3.5-1: Strategic importance of the Skills and Social Dimension Pillar per region 
(left) and presence of initiatives (right) 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

3.5.2  Regional relevance of Actions under the Skills and Social Dimension Pillar 

Based on the survey responses, respondents generally view the proposed actions 
under  the  Skills  and  Social  Dimension  pillar  as  relevant  to  their  region.  The 
European  Fair  Transition  Observatory  received  mixed  responses.  While  3 
respondents  consider  it  as  “highly  relevant”  and  5  consider  it  “relevant”,  3 
respondents  viewed  it  as  “not  relevant”,  and  2  rated  it  as  only  “somewhat 

42 European Commission (2025), Industrial Action Plan for the European automotive sector. 

27 

 
 
 
 
 
 
relevant” (Figure 3.5-2). This indicates some recognition of its role in supporting 
a  just  transition  but  suggests  that  further  improvements  are  needed.  Legal 
amendments  to  the  European  Globalisation  Adjustment  Fund  (EGF)  and  the 
European  Social  Fund  Plus  (ESF+)  Regulations  were  viewed  similarly.  A 
majority of respondents (6) rated these amendments as “highly relevant”, with 3 
considering them “relevant” and 2 as “somewhat relevant”. No respondents found 
them not relevant, although 3 indicated they don’t know, highlighting a gap in 
familiarity or understanding among some stakeholders. 

Figure 3.5-2: How relevant are the following actions under the Action Plan (Skills and 
Social Dimension  pillar) to your region’s needs, priorities, or strategic objectives? 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

The relevance of these Actions depends on the regional structure of the workforce 
and the potential exposure of the region to job losses or restructuring of the sector. 
The ageing workforce is a particularly shared concern, along with the difficulty 
to retrain (especially for smaller companies). Regional stakeholders experience 
shortages in funding and find them reactive instead of proactive: therefore, they 
require a more anticipatory approach. Finally, the effectiveness of the European 
Fair  Transition  Observatory  will  depend  on  whether  monitoring  translates  into 
actionable and evidence-based policies. 

3.5.3  Challenges in implementing the Skills and Social Dimension Pillar actions   

The  survey  responses  highlight  a  range  of  challenges 
the 
implementation of the Skills and Social Dimension pillar. The lack of upskilling 
or reskilling programmes for automotive workers is a significant challenge, with 
4 respondents identifying it as a “significant barrier” and 5 as a “moderate barrier” 
(Figure 3.5-3). In addition, there is a shortage of qualified training providers or 
vocational education institutions. This indicates a possible gap in the availability 
of  training  and  re-skilling  options  to  support  workers  in  adapting  to  sectoral 
changes.  

impacting 

28 

 
 
 
 
 
Figure 3.5-3: Challenges limiting ability to engage with or benefit from Skills and Social 
Dimension actions 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

Another  cited  challenge  is  the  limited  regional  data  or  foresight  capacity  to 
anticipate  job  losses  and  skill  needs.  While  no  respondents  considered  it  a 
significant  barrier,  9  rated  it  as  a  “moderate  barrier”,  indicating  widespread 
recognition of the need for better labour market intelligence to inform transition 
planning. 

In addition, there exist structural barriers to working mobility or inclusion, such 
as  low  participation  of  youth  and  older  workers,  which  was  identified  as  a 
“significant” or “moderate” barrier by 8 respondents, reflecting the need for more 
inclusive employment strategies across the sector. 

3.6  Market access and supportive business environment 

The  Market  Access  and  Supportive  Business  Environment  pillar  focuses  on 
ensuring that the European automotive industry can compete in a global market 
by securing fair and open access to international markets. The automotive sector 
relies heavily on exports, imports, and foreign investment, making international 
trade conditions a key determinant of competitiveness. A core objective of this 
pillar  is  to  promote  a  level  playing  field  vis-à-vis  overseas  competitors.  This 
includes ensuring a stable and predictable business and regulatory environment 
within the EU. 

29 

 
 
 
 
3.6.1  Strategic importance and implementation 

The  survey  results  indicate  that  the  Market  Access  and  Supportive  Business 
Environment pillar is a strategic priority among the surveyed regional authorities. 
Among  the  respondents,  10/20  consider  it  to  be  “very  strategic”,  7  see  it  as 
“strategic”,  and  3  see  it  as  either  “partially”  or  “marginally  strategic”  (Figure 
3.6-1). In terms of activity related to this pillar, only 6/19 report having “ongoing 
initiatives”,  while  8  indicate  either  that  initiatives  are  “planned”  or  “under 
discussion” and 5 have “no initiatives” or do not know. 

Figure 3.6-1: Strategic importance of the Market Access and Supportive Business 
Environment Pillar per region (left) and presence of initiatives (right) 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

3.6.2  Regional relevance of Actions under the market access and supportive business 
environment pillar 

The  actions  proposed  under  the  Market  Access  and  Supportive  Business 
Environment  pillar  of  the  Action  Plan  are  broadly  aligned  with  the  region’s 
strategic priorities and industrial needs. Among the most highly relevant actions, 
regulatory  simplification  received  the  strongest  support,  with  7/12  respondents 
rating it as “highly relevant” and the remaining 5 marking it as “relevant” (Figure 
3.6-2).  This  highlights  a  demand  from  the  automotive  sector  to  improve  the 
regulatory  environment  to  foster  a  more  efficient  and  attractive  business 
environment. Similarly, international  trade  remains  a top concern, with  actions 
such  as  continuing  to  pursue  Free  Trade  Agreements  (FTAs)  and  mutually 
beneficial  international  partnerships  being  rated  as  either  “highly  relevant”  or 
“relevant” by all respondents. This reflects the strategic importance of ensuring 
global market access and securing stable sourcing channels for critical inputs. 

30 

 
 
 
 
Figure 3.6-2: How relevant are the following actions under the Action Plan (Market 
Access and Supportive Business Environment pillar) to your region’s needs, priorities, 
or strategic objectives? 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe   

Other  actions  targeting  economic  security,  such  as  monitoring  anti-subsidy 
measures related to Chinese electric vehicle imports and the use of Trade Defence 
Instruments and the Foreign Subsidies Regulation to address unfair practices, also 
received strong support. This points to growing industry concern over competition 
in the global EV and battery markets, particularly with regards to China. A key 
concern of regional stakeholders is to level the playing field so that rules are the 
same for everyone (inside and outside EU). 
Finally,  the  regional  relevance  of  these  Actions  depends  on  the  exposure  to 
international competition and the presence of SMEs in the region. 

3.6.3  Challenges in implementing the market access and supportive business 
environment actions 

The  survey  responses  highlight  a  range  of  challenges 
the 
implementation  of  the  Market  Access  and  Supportive  Business  Environment 
pillar  (Figure  3.6-3).  One  of  the  most  cited  challenges  is  the  administrative or 
regulatory complexity faced by local firms, including issues related to approval 
processes,  market  access,  and  investment  permits.  This  was  cited  as  a 

impacting 

31 

 
 
 
 
“significant” or “moderate barrier” by 8/12 respondents, highlighting a need to 
reduce  bureaucratic  burdens  to  enhance  regional  competitiveness.  Another 
frequently  cited  issue  is  the  limited  regional  support  structures  for  SMEs  to 
comply with or adapt to EU automotive regulations. While 4 respondents viewed 
this as a “significant barrier”, 3 more rated it as “moderate”, suggesting that SMEs 
may lack the necessary support to navigate regulatory changes. 

Figure 3.6-3: Challenges limiting ability to engage with or benefit from Market Access 
and Supportive Business Environment actions 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

Challenges  related  to  low  awareness  or  capacity  among  regional  actors  to 
respond  to  trade-related  risks  or  opportunities  and  the  insufficient  capacity  to 
align with regulatory simplification initiatives at EU or national level were also 
highlighted, with 6/12 rating it as either a “significant” or “moderate barrier”. This 
points to  a need for capacity-building and improved information  flow between 
institutions and industry stakeholders. 
Interestingly, lack of regional strategies to attract and retain foreign investment 
and  fragmented  export  promotion  and  support  services  for  automotive  SMEs 
received  a  wider  spread  of  responses,  with  relatively  fewer  respondents  rating 
them as significant. In addition, the limited coordination between regional and 
national authorities is considered “not a barrier” by 5/12 respondents, the highest 
from each challenge. 

32 

 
 
 
 
4  The  regional  dimension  of  the  Action 
Plan 

This section builds on the results of the survey displayed above to provide deeper 
insights.  Firstly,  it  explores  regional  priorities  based  on  the  five  pillars  of  the 
Action Plan and the strategic importance of each pillar according to the survey 
respondents. It also outlines the most important actions for regional authorities 
and  where  funding  can  play  a  role.  Secondly,  the  section  presents  initiatives 
developed at regional level, independently from the Action Plan. This gives an 
overview  of  existing  good  practices.  Finally,  the  report  concludes  with  some 
recommendations to the Commission and regional authorities about their role in 
the implementation of the Action Plan. 

4.1  Regional priorities 

Identifying  which  pillars  are  considered  as  the  most  strategic  is  important  for 
understanding  where  stakeholders  in  automotive  regions  see  the  greatest 
opportunity and challenges. Results of the survey also highlight which actions are 
most beneficial. 

4.1.1  Pillars assessment 

The analysis ranks the pillars based on the number of respondents who rated them 
as  “very  strategic”  or  “strategic”,  allowing  for  a  comparison  of  their  relative 
importance. Figure 4.1-1 shows that Competitiveness and supply chain resilience 
is ranked as the most strategic (20), followed closely by Clean Mobility (18), Skills 
and social dimension (18), Innovation & Digitalisation pillar (17), and Market 
access,  level  playing  field  and  economic  security  (17).  Each  pillar  is  closely 
ranked, highlighting a balanced distribution across the five pillars.  

33 

 
 
 
Figure 4.1-1: Number of respondents identifying each pillar as either "very strategic" or 
"strategic" 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

4.1.2  Actions assessment 

Across  the  five  pillars,  the  Action  Plan  outlines  42  specific  Actions  aimed  at 
supporting the automotive transition. Given the number of Actions, it is useful to 
see which ones are regarded as the most relevant in automotive regions. From the 
survey results, 26 out of the 42 Actions received high levels of backing, with at 
least  75%  of  respondents  rating  them  as  either  “highly  relevant”  or  “relevant” 
(Table 4.1-1). These results provide insights into regional priorities, highlighting 
where policy action could have the greatest impact in the automotive transition, 
both within and between the different pillars. 

Table 4.1-1: List of Actions where at least 75% of respondents rated them as either 
“highly relevant” or “relevant” 

Pillar 

Innovation & 
digitalisation 

Actions 
Support research and innovation to connected and automated mobility and to 
develop next-gen battery technology through Horizon Europe 
Boost regulatory framework and single market integration for European 
Autonomous Driving 
Develop adequate measures on access to vehicle data, functions and resources 
including guidance on Data Act and if needed, a legislative proposal on access 
to vehicle data 
Establish the European Connected and Autonomous Vehicle Alliance in 2025 
Work with EIB Group and private sector to deploy TechEU investment 
programme on scale-ups, including for building up of the battery cell 
technologies supply chain 

34 

 
 
 
Clean mobility 

Competitiveness 
and Supply 
Chain Resilience 

Market access 
and supportive 
business 
environment 

Continue working towards sufficient cybersecurity without stifling innovation 
and commercialisation 
Develop economic security standards 
Make available EUR 570 million under the Alternative Fuels Infrastructure 
Facility in 2025 and 2026 
Proposal to amend CO₂ emission standards for cars and vans (2025–2027 
flexibility) 
Communication and Legislative initiative to Decarbonise Corporate Fleets 
Accelerate review of CO₂ performance standards for cars and vans 
Recommendation on fiscal and non-fiscal demand side incentive 
Further support to enhance recycling 
Resilience and sustainability criteria for key vehicle components 
Look into financing support for end-of-life vehicles and battery recycling 
facilities 
Comprehensive “Battery Booster” Package 
Rapid finalization of Co-Decision on the End-of-Life of Vehicles Regulation 
Facilitate joint private sector investments into the upstream value chain 
Regulatory simplification 
Continue to pursue FTA and mutually beneficial international partnerships 
negotiations to enhance market access and sourcing opportunities for the EU 
automotive industry 
Monitor the application of the anti-subsidy measure addressing the Chinese 
electric vehicle imports and undertake an anti-circumvention investigation 
when warranted 
Explore conditions for inbound foreign investments in the automotive sector, 
including when public funding is involved 
Develop further cooperation through Clean Trade and Investment Partnerships 
and Strategic Partnerships to secure better access to battery minerals 
Engage with the industry and Member States on the approach applied to 
preferential rules of origin in the context of FTAs  
Make use of the Trade Defence Instruments and the Foreign Subsidies 
Regulation to address unfair practices in the batteries segment and part 
segments where necessary 
Look into defining specific rules of origin in trade defence measures for the 
EVs ecosystem 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

While 26 Actions received strong overall support, it is possible to narrow these 
down  into  a  smaller  group  as  the  most  strategic.  Seven  Actions  were  rated  as 
“highly relevant” by at least 50% of the respondents (Table 4.1-2), marking them 
as clear priorities of the sector. These measures capture the automotive industry’s 
most  urgent  concerns,  reflecting  where  regional  stakeholders  see  the  greatest 
potential for impact and the strongest need for coordinated action. 

35 

 
 
 
 
Table 4.1-2: List of Actions where at least 50% of respondents rated them as “highly 
relevant” 

Pillar 
Innovation & 
digitalisation 

Clean mobility 

Competitiveness 
and supply 
chain resilience 
Skills and social 
dimension 

Market access 
and supportive 
business 
environment 

Actions 
Support research and innovation to connected and automated mobility and to 
develop next-gen battery technology through Horizon Europe 
Proposal to amend CO₂ emission standards for cars and vans (2025–2027 
flexibility) 
Facilitate joint private sector investments into the upstream value chain 

Legal amendments to EGF and ESF+ Regulations* 

Regulatory simplification 
Continue to pursue FTA and mutually beneficial international partnerships 
negotiations to enhance market access and sourcing opportunities for the EU 
automotive industry 
Explore conditions for inbound foreign investments in the automotive sector, 
including when public funding is involved 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 
Note: * The Action included from the Skills and social dimension pillar did not receive at least 50% “Highly 
relevant”. It has still been included as it had the highest share (42%) out of the two Actions under the pillar.  

Under the Innovation & digitalisation pillar, respondents in automotive regions 
back  sustained  investment  in  R&D,  recognising  that  automated  mobility  and 
advanced battery technology are two strategic priorities for the sector. Horizon 
Europe is seen as a key vehicle for supporting these efforts, allowing stakeholders 
of automotive regions to invest in these areas. By advancing these technologies, 
Europe can strengthen its competitive edge, ensuring that it does not fall behind. 
In  this  pillar,  regions  are  important  as  they  can  host  regional  (cross-border) 
testbeds for connected and autonomous mobility. Moreover, regional authorities 
can  facilitate  collaboration  between  research,  tech  companies  and  automotive 
industry through regional clusters. 

Under the Clean mobility pillar, the Proposal to amend CO₂ emission standards 
for  cars  and  vans  (2025–2027  flexibility)  received  the  strongest  support.  This 
reflects regional concerns over the current legislation and its potential short-term 
impacts on industry. The proposed flexibility is seen as offering manufacturers a 
more manageable adaptation period, helping to avoid disruption to production and 
employment while maintaining the long-term trajectory towards decarbonisation. 
Regional  stakholders can also directly take  action to decarbonise  the  corporate 
fleets  by  drawing  inspiration  from  the  good  practices  and  recommendations 
outlined  in  the  Communication43  published  by  the  Commission  alongside  the 
Action  Plan.  Furthermore,  as  mentioned  by  some  survey  respondents,  regional 
authorities  can  support  the  planning  of  charging  stations  deployment  by 
facilitating permitting processes. 

43 European Commission (2025) Decarbonise Corporate Fleets. 

36 

 
 
 
 
Regional  stakeholders  may  also  draw  on  the  Social  Climate  Fund  (SCF), 
established  to  mitigate  the  social  impacts  of  the  energy  transition,  with  €86.7 
billion  allocated  from  202644.  Under  the  SCF,  resources  may  be  allocated 
towards social leasing schemes for zero-emission vehicles tailored to vulnerable 
residents and small enterprises. The European Commission’s recommendations 
explicitly  encourage  such  inclusion  in  national  Social  Climate  Plans45.  SCF 
resources could be used to co-finance leasing contracts, provide targeted subsidies 
to reduce monthly payments, or cover initial deposits46. 

Under  the  Competitiveness  and  supply  chain  resilience  pillar,  respondents 
identify joint private sector investments into the upstream value chain as crucial 
for  strengthening  the  industry’s  competitiveness.  Investment  in  the  upstream 
value chain, including component production and technology manufacturing, can 
help reduce reliance on imports. Moreover, regional authorities can play an active 
role in establishing local dismantling and recycling facilities: they can facilitate 
the site identification and permitting processes. 

Under the Skills and social dimension pillar, respondents in automotive regions 
back the legal amendments to EGF and ESF+ Regulations  to support workers 
through  the  transition.  These  amendments  can  provide  greater  flexibility  and 
anticipation in supporting targeted qualification measures. To this aim, regional 
stakeholders  can  use  data  from  the  European  Fair  Transition  Observatory  for 
multiple purposes. They  can  track the  risk  of  job  losses,  monitor demographic 
trends (ageing workforce, youth employment, etc.), and inform about retraining, 
education and just-transition strategies. All in all, these data allow for an early 
warning system to anticipate and target upskilling efforts. 

Under the Market access and supportive business environment pillar, the Action 
calling  for  regulatory  simplification  is  considered  highly  relevant.  Simplifying 
compliance requirements is seen as a way to ensure EU automotive regions can 
reinforce their position in the market. Respondents also point to the importance 
of pursuing free trade agreements (FTAs) and mutually beneficial international 
partnerships. FTAs can lower tariffs and open sourcing opportunities, two critical 
factors for Europe’s competitiveness. In addition, the exploration of conditions 
for inbound foreign investments in the automotive sector, including when public 
funding  is  involved  is  considered  highly  relevant.  Under  this  pillar,  regional 
authorities can support suppliers by providing services (such as information, legal 
support,  readiness  programmes)  to  comply  with  FTA  rules  of  origin.  Regional 
authorities can also align their financial aid with inbound FDI conditions. 

44 European Commission (2025) Recommendations for Member States to help tackle transport poverty and 

45 European Alternative Fuels Observatory (2025) New EU Recommendations Call for Affordable, Accessible, 

promote fair, sustainable moblity.  

and Fair Mobility Across Europe.  

46 European Commission (2025) Recommendation (EU) 2025/1021 of 22 May 2025 on transport poverty: 

ensuring affordable, accessible and fair mobility.  

37 

 
 
 
 
 
4.1.3  Funding gaps 

From  the  seven  Actions  shortlisted  above,  four  of  them  are  directly  linked  to 
funding issues. In fact, several reports argue that additional fundings are needed 
for Europe to remain an attractive investment destination47,48,49. Therefore, it is 
important to assess the funding possibilities available at regional level and identify 
possible gaps. 

Figure 4.1-2: Financing instruments used at regional level to support the automotive 
sector’s transition 

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 
Note: “Other” include CEF-Connecting Europe Facility, Interreg, and Just Transition Fund. 

The European Commission has allocated about €1 billion under Horizon Europe 
between 2025 and 2027 to drive innovation in connected and autonomous vehicles 
and next-generation battery technologies50. 

In parallel, the Alternative Fuels Infrastructure Facility (AFIF) has mobilised 
a further €1 billion for 2024–2025, with €422 million already allocated in the first 
round  to  support  the  roll-out  of  almost  5,000  electric  vehicle  charging  points, 
2,500  for  light-duty  and  2,400  for  heavy-duty  vehicles,  and  35  hydrogen 
refuelling stations for cars51. AFIF’s budget is, however, expected to be depleted 
by  mid-2025,  with  only  limited  funds  available  by  early  2026.  This  creates  an 
estimated shortfall of around €1.25 billion for infrastructure deployment through 

47 Transport & Environment (2024) Carmaker’s EV investments: Is Europe falling behind? 
48 McKinsey (2025) A new ‘ERA’: An action plan for the European automotive industry. 
49 Cresti et al. (2025) Vulnerabilities and capabilities in the EU Automotive industry: Leveraging Input-Output 

Analysis and Economic Complexity. 

50 European Commission (2025) Industrial Action Plan for the European automotie sector.  
51 European Commission (2025) Alternative fuels: €422 million of EU funding to boost zero-emission mobility.  

38 

 
 
 
 
 
to 2027, a gap that is particularly acute in Southern and Eastern Europe, where 
coverage along the TEN-T network remains incomplete52. 

In addition, social cohesion instruments are being used to manage the transition. 
The  European  Social  Fund  Plus  (ESF+)  is  supporting  the  reskilling  and 
upskilling  of  automotive  workers.  The  Commission  is  explicitly  encouraging 
Member States to reprogramme ESF+ funds toward sectors such as clean energy 
and the automotive industry, to support workforce adaptability and resilience53. 

Furthermore, the European Globalisation  Adjustment  Fund  (EGF)  provides 
targeted  assistance  for  those  affected  by  job  losses54.  Between  2021  and  2022 
alone, the EGF disbursed €51.8 million to over 13,000 displaced workers, with 
the largest portion pertaining to the air transport and automotive sector, by funding 
measures  concerning  retraining,  career  guidance,  and  job-search  assistance55. 
Eurofound  reports  that  since  2014,  around  11,000  automotive-sector  workers 
have benefited  from EGF  support,  with approximately €32.8 million  allocated, 
particularly in cases linked to plant closures and production offshoring, such as 
the Nissan site in Spain (2021) and Van Hool in Belgium (2024)56. As a practical 
example, an EGF-funded scheme in the Spanish region of Aragón delivered €1.4 
million  to  support  320  workers  laid  off  from  the  automotive  sector  due  to  the 
COVID-19 pandemic57. 

4.2  Regional add-ins and preparedness 

To identify any possible gaps in the Action Plan, the survey asked whether there 
exist  any  regional  initiatives  developed  independently  from  the  plan.  The 
responses  per  pillar  are  presented  in  Figure  4.2-1.  Results  show  that  for  each 
pillar, regional authorities have been developing their own initiatives prior to the 
Action Plan. There are also some initiatives that are not covered in the plan. They 
are presented per pillar in the following subsections. 

52 Transport&Environment (2025) Plugging the gap: How to close the AFIF funding gap in 2026/2027.  
53 European Commission (2025) Commission proposes broader, faster EU social and employment funds.  
54 European Commission (2025) Boosting the European car sector.  
55 European Commission (2023) European Globalisation Adjustment Fund helped 13,000 dismissed workers to 

re-train and get back into employment.  

56 Eurofound (2025) Employment in the EU’s automotive sector.  
57 Eureporter (2021) €1.4 million from European Globalization Adjustment Fund to support dismissed workers 

in automotive sector in Spain.  

39 

 
 
 
 
Figure 4.2-1: Are there regional initiatives on innovation and digitalisation in the 
automotive sector that are not covered by the Action Plan? 

s
t
n
e
d
n
o
p
s
e
r

f
o
r
e
b
m
u
N

18

16

14

12

10

8

6

4

2

0

Innovation &
Digitalisation

Clean Mobility

Competitiveness and
supply chain
resilience

Skills and social
dimension

Market access, level
playing field and
economic security

Yes

No

I don't know

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

4.2.1  Innovation and digitalisation 

The  existence  of  independent  initiatives  are  reported  in  four  regions  (Figure 
4.2-1). Most of these initiatives fall under the scope of the European Connected 
&  Autonomous  Vehicle  Alliance  proposed  in  the  Action  Plan.  For  example, 
Baden-Württemberg  launched  support  services  to  foster  OpenSource  Software 
collaborations  among  companies  (e.g.  standardisation  of  data  formats,  joint  IT 
security  solutions).  Still  in  Germany,  Oberpfalz  used  Interreg  Europe  fund  to 
bring  together  SMEs,  research  institutes,  regional  clusters,  and  transnational 
partners  to  encourage  digital  transformation  readiness,  as  well  as  cross-border 
innovation  transfer.  In  the  Basque  Country,  multiple  initiatives  have  been 
launched  regarding  data  acquisition,  knowledge  transfer,  AI  and  Digital  Twin 
research, and Cooperative, Connected and Autonomous Mobility. 

The Lombardia Mobility Cluster goes slightly beyond the Action Plan as it also 
investigates the use of 3D printing for out-of-series parts. This technology is not 
included  in  the  Innovation  pillar  of  the  plan  and  is  interesting  as  it  may  make 
production more efficient, especially for lightweight vehicles58,59. 

4.2.2  Clean mobility 

The existence of independent initiatives is reported in six regions (Figure 4.2-1). 
Most  of  these  initiatives  fall  under  the  Decarbonisation  of  Corporate  Fleets  or 

58 Forbes (2024) 3D Printing Takes On New Automotive Dimensions. 
59 Data Insights Market (2025) Automotive 3D Printing Market Drivers and Challenges: Trends 2025-2033. 

40 

 
 
 
 
 
 
 
 
Charging  Infrastructure  Roll-out.  For  example,  the  Nomad  Car  Hydrogen 
experiment in Haute-Normandie is a project to retrofit a diesel bus into hydrogen-
powered bus. It is in operation on a service line since 2024. In Bavaria, there are 
some state-owned funding programs to expand charging infrastructure, whereas 
Baden-Württemberg  co-finances 
the  development  of  regional  hydrogen 
production.  In  the  Basque  Country,  fiscal  incentives  are  used  to  support  the 
development  of  battery  manufacturing,  charging  stations,  as  well  as  hydrogen 
technologies. 

Some regions  even  have their  own  Sustainable  Mobility Plan.  It  is the  case  of 
Catalunya with their Electric Vehicle Promotion Plan 2025-203060, the Basque 
Country61, and Baden-Württemberg62. 

Similarly  to  the  previous  pillar,  Lombardia  has  initiatives  going  beyond  the 
Action  Plan.  It  concerns  the  production  of  bio-methane  in  farms,  as  well  as 
refurbishing  fossil  fuel  refineries  into  Hydrotreated  Vegetable  Oil  production 
plants. The region also calls for an approach allowing for a mix of alternative fuels 
based  on  Life-Cycle  Assessment  instead  of  a  solution  based  solely  on  electric 
vehicles63. 

4.2.3  Competitiveness and supply chain resilience 

Independent  initiatives  are  reported  in  four  regions  (Figure  4.2-1).  Some 
initiatives fall within the scope of the Battery Booster Package. For example, the 
Battery  Safe  Talk  in  Steiermark  allows  to  exchange  ideas  on  the  latest 
developments  in  battery  safety  and  promote  structural  change  in  the  industrial 
landscape. In the Basque Country, the regional government united a strong group 
of  private  stakeholders  to  found  BasqueVolt:  a  company  aiming  to  develop  a 
solid-state battery technology. 

Other  initiatives  concern  the  End-of-life  Vehicles,  such  as  the  SIGRAUTO 
network  in  Spain,  which  coordinates  vehicle  deconstruction  and  components 
recovery  across  Basque  car  dismantlers.  Recycling  and  circular  economy  use 
cases  are  also  increasingly  explored  in  the  Cluster  Mobility  &  Logistics  in 
Oberpfalz. 

The ERDF-funded project Drive2Transform goes a step further than the Action 
Plan  as  it  helps  SMEs  develop  a  cross-regional  strategy  and  deploy  a 

60 Generalitat de Catalunya (2025) Electric Vehicle Promotion Plan 2025-2030. 
61 Autonomous Community of the Basque Country (2023) Ley 11/2023, de 9 de noviembre, de movilidad 

sostenible de Euskadi. 

LMG) vom 18. März 2025. 

62 Land Baden-Württemberg (2025) Mobilitätsgesetz des Landes Baden-Württemberg (Landesmobilitätsgesetz - 

63 Cluster Lombardo della Mobilità (2025) CARBURANTI RINNOVABILI PER LE FILIERE PRODUTTIVE 

DELLA MOBILITÀ IN LOMBARDIA. 

41 

 
 
 
 
 
 
 
transformation  platform.  Several  regions,  including  Jihozápad  and  Oberpfalz, 
take part in this project, which will propose regional transformation scenarios for 
businesses as well as transnational exploitation cases64. 

4.2.4  Skills and social dimension 

Independent initiatives are reported in three regions (Figure 4.2-1). The initiatives 
in this pillar are more detailed than the actions outlined in the Action Plan. It is 
particularly true for the Basque Country, which has launched numerous initiatives 
to  support  the  automotive  industry.  For  example,  the  Automotive  Intelligence 
Centre has an active policy of raising awareness in society, particularly among 
children, young people and women, to attract talent to the sector. The Centre also 
develops specialised courses, such as a Master degree in Automotive Engineering, 
a Key Account Manager Program for professionals dealing with customers, or a 
Junior Mobility Immersion Program to guide young students in their professional 
development.  Moreover,  Basque  universities  are  developing  two  new  Master 
degrees  in  Advanced  Manufacturing  Techniques  and  in  Cybersecurity  for  the 
Automotive  Sector.  Vocational  trainings  are  also  offered  to  technicians  to 
specialise  professionals  in  maintenance  and  management.  Finally,  the  Basque 
Employment  Service  provides  also  specific  upskilling  and  job  placement 
schemes. 

In Baden-Württemberg, the Strategic Dialogue for the Automotive Sector brings 
together  automotive  companies,  research  bodies,  local  authorities  and  trade 
unions  to  ensure  a  socially  responsible  transition.  One  activity  consists  in 
developing  programmes  in  electric  mobility,  battery  technology,  and  software-
defined vehicles. They also create a network of training providers and companies 
to coordinate reskilling offers, launch innovative projects such as a car workshop 
for digital and e-mobility skills to train workers and student. Finally, they partner 
with universities and vocational training centres to initiate pilot programmes for 
battery and EV skills. 

4.2.5  Market access and supportive business environment 

Independent initiatives  are  reported  in  two  regions  (Figure  4.2-1).  The  Basque 
Country  is  again  particularly  well-equipped  regarding  this  pillar.  A  platform 
named  “Invest  in  the  Basque  Country”  provides  a  one-stop-shop  support  for 
investments in advanced manufacturing (in particular in the automotive sector). 
Moreover, industry associations such as the Basque Automotive Cluster monitor 
trade defence, anti-dumping issues, and coordinates regional responses to unfair 
trade practices. Finally, the Basque Trade & Investment agency provides export 

64 Interreg Central Europe (2025) Drive2Transform: https://www.interreg-central.eu/projects/drive2transform/ 

42 

 
 
 
 
 
promotion, trade missions, and regulatory support, including tailored advisory for 
automotive SMEs. 

4.2.6  Regional preparedness 

The  Action  Plan  is  quite  comprehensive  in  terms  of  pillars  and  actions.  The 
previous  sections  show  that  regional  initiatives  started  even  before  the 
presentation of the plan. As described above, some of them fall within the scope 
of  the  Action  Plan  and  others  are  complementary.  However,  it  seems  that  the 
process is at its inception stage. This is why an assessment of the readiness of the 
regions is proposed. 

To evaluate the readiness of the regions regarding the 5 pillars, different degrees 
of preparedness have been identified. The first degree is if a region has one or 
several ongoing initiatives, the second degree is if the number of challenges that 
are  minor  or  no  barriers  outnumber  the  ones  that  are  moderate  or  significant 
barriers,  the  third  degree  is  if  the  region  has  reported  to  have  an  influential 
position. The  findings are displayed in  Figure  4.2-2.  The pillar  Market access, 
level playing field and economic security is by far the one for which the regions 
seem to be the least prepared, with 68% of regions having no ongoing initiative. 
This pillar indeed has the least possibilities of regional action compared to the 
other  pillars.  It  is  followed  by  the  pillar  Clean  Mobility,  with  40%  of  regions 
without  ongoing  initiatives.  It  is  also  facing  a  lot  of  barriers  for  the 
implementation of actions, just like the pillars Competitiveness & supply chain 
resilience and Innovation & digitalisation. These challenges are discussed in more 
details in Chapter 3. Regions are a bit more advanced regarding the pillar Skills & 
social  dimension,  but  the  majority  of  them  still  have  no  ongoing  initiative  or 
significant barriers to implementing them. 

The high proportions of regions without ongoing initiatives and with significant 
barriers are delaying their transition towards a more innovative, sustainable, and 
competitive  industry.  These  results  confirm  that  further  action  is  necessary  to 
assist regional stakholders in addressing the challenges of the transition. 

43 

 
 
 
 
Figure 4.2-2: Degrees of preparedness of the regions per pillar 

100%

80%

60%

40%

20%

0%

15%

15%

45%

25%

15%

5%

40%

40%

21%

5%

47%

26%

21%

5%
5%

68%

37%

0%

26%

37%

Innovation &
Digitalisation

Clean Mobility

Competitiveness and
supply chain
resilience

Skills and social
dimension

Market access, level
playing field and
economic security

Initiatives, minority of barriers, influential position

Initiatives, minority of barriers, but no influential position

Source: Panteia, Ramboll and Tplan (2025) Survey among automotive regions in Europe 

4.3  Regional dimension of a just automotive transition 

The European Commission’s Action Plan for the Automotive Sector, published 
in March 2025, proposes addressing the automotive transition challenge by means 
of  a  comprehensive  set  of  42  actions  across  five  key  pillars:  Innovation  and 
Digitalisation,  Clean  Mobility,  Competitiveness  and  Supply  Chain  Resilience, 
Skills  and  Social  Dimension,  and  Market  Access  and  Supportive  Business 
Environment.  The  implementation  of  the  plan  is  clearly  at  its  inception  stage. 
Furthermore,  the  current  socio-economic  and  geopolitical  conditions  and  the 
global nature of the transition process call for a pragmatic and flexible approach. 
This requires monitoring over time the capacity of the sector to implement the 
actions and their actual impact. Moreover, the previous study by the Committee 
of the Regions State of play and future challenges of automotive regions, aimed 
at  supporting  the  European  Commission  in  drafting  the  Action  Plan,  already 
demonstrated that a just and inclusive automotive transition is only possible by 
recognising  and  addressing  the  regional  dimension  of  the  automotive  industry. 
The  present  study,  “Monitoring  of  the  transition  challenges  and  territorial 
solutions in the automotive sector”, represents a first monitoring of the progress 
of the automotive transition and examines the regional dimension of the Action 
Plan. Based on the findings from the desk research and survey analysis performed 
as part of the study, this report concludes with a set of recommendations on how 
to address the regional dimension of the Action Plan towards a just and inclusive 
transition.  Considerations  and  recommendations  are  formulated  around  the  5 
Action Plan pillars.  

44 

 
 
4.3.1  Innovation and digitalisation 

The  findings  clearly  indicate  that  regional  stakeholders  across  Europe  see  this 
pillar  as  central  to  their  strategic  objectives.  EU-level  programmes  such  as 
Horizon  Europe  are  particularly  valued,  as  they  provide  the  financial  and 
structural  support  necessary  to  advance  research  and  innovation  in  next-
generation technologies, especially automated mobility and battery development. 
At  the  same  time,  notable  variations  exist  in  regional  capacities.  Regions  with 
well-established R&D clusters and innovation ecosystems are positioned to move 
more  quickly,  while  others  face  challenges  related  to  funding  access,  skills 
shortages,  and  regulatory  uncertainty.  These  asymmetries  underline  the 
importance of differentiated support to ensure that all regions can benefit from the 
opportunities that technological development and digitalisation present. 

To effectively support regions, the Commission can: 

•  Prioritise regulatory clarity and stability: clearer frameworks for connected 
and  autonomous  mobility  will  lower  barriers  to  entry  and  encourage 
investment. 

•  Improve  access  to  existing  funding  schemes:  this  can  take  the  shape  of 
simplified application procedures, technical assistance, and better outreach 
to help regions that currently struggle to mobilise co-funding. 

To effectively implement the actions, regional stakeholders can: 

•  Leverage  their  local  innovation  ecosystems:  this  includes  fostering 
collaboration between research institutions, SMEs, technology providers, 
and larger automotive manufacturers through regional clusters. 

•  Set up cross-border initiatives: they offer models for scaling innovation and 
ensuring that smaller regions can participate in broader value chains. 
•  Develop  regional  roadmaps  aligning  with  EU  priorities  while  reflecting 
local strengths, such as specific R&D specialisations or industry niches.  
•  Explore innovative approaches beyond the immediate scope of the Action 
Plan—for example, Lombardia’s focus on 3D printing—demonstrating that 
regional initiatives can complement and enrich EU ambitions. 

4.3.2  Clean Mobility 

Regional  stakeholders  view  this  pillar  as  highly  strategic,  with  most  already 
engaged in relevant initiatives such as charging infrastructure roll-out and clean 
fleet adoption. At the same time, the transition to zero-emission vehicles (ZEVs) 
brings  significant  challenges,  such  as  delays  in  grid  connections,  insufficient 
charging  networks,  affordability  concerns  for  consumers,  and  difficulties  in 
mobilising  co-funding.  These  issues  demonstrate  that  while  the  long-term 
trajectory is clear, short-term constraints could undermine progress. This is why 

45 

 
 
 
 
 
actions  such  as  the  recommendation  on  transport  poverty,  the  guidance  on  the 
social  climate  plans,  and  the  recommendation  on  shortening  grid  connection 
procedures  are  of  paramount  importance.  Nevertheless,  differences  in  regional 
industrial bases, infrastructure readiness, and policy frameworks mean that not all 
areas are equally equipped to seize the opportunities of clean mobility. 

To effectively support regions, the Commission can: 

•  Ensure regulatory clarity, particularly around emission standards and the 
long-term framework for the 2035 ICE ban, which many stakeholders want 
reviewed for feasibility. 

•  Enhance  funding  access  and  flexibility  through  simplified  procedures, 

greater technical assistance, and more co-financing opportunities.  

•  Tailor  funding  streams  to  different  regional  contexts—for  instance, 
targeting  vulnerable  households  through  social  leasing  schemes  or 
supporting hydrogen pilots in areas with strong industrial bases. 

To effectively implement the actions, regional stakeholders can: 

•  Embed  clean  mobility  within  broader  sustainable  mobility  strategies, 
aligning  regional  roadmaps  with  EU  objectives  while  adapting  them  to 
local circumstances. 

•  Facilitate  permitting  processes  for  charging  stations  and  streamline 
authorisations  for  grid  connections  to  favour  infrastructure  development 
and investments. 

•  Actively promote plans to support the initiative to Decarbonise Corporate 
Fleets: this can be done through legislation, financial incentives, or pilot 
projects. 

4.3.3  Competitiveness and supply chain resilience 

Results of the study confirm strong regional alignment with EU actions that aim 
to strengthen domestic capabilities in battery production, recycling, and upstream 
supply chains. At the same time, limited industrial capacity, gaps in raw material 
availability,  financial  constraints,  and  skills  shortages  all  represent  structural 
barriers.  In  many  regions,  difficulties  also  arise  from  permitting  delays, 
insufficient industrial land, or inadequate recycling infrastructure. These barriers 
highlight  that  while  there  is  strong  political  and  industrial  commitment,  the 
transition  will  require  deep  structural  investments  and  long-term  coordination 
across levels of governance. 

To effectively support regions, the Commission can: 

•  Ensure  that  industrial  policy  is  closely  linked  with  funding  and 
infrastructure development: large-scale initiatives like the Battery Booster 
Package should be complemented with financial instruments accessible to 

46 

 
 
 
 
 
SMEs,  which  often  struggle  to  meet  new  sustainability  and  efficiency 
standards. 

•  Provide  coordination  platforms  to  help  regional  stakeholders  pool 
investments,  share  transformation  strategies,  and  align  supply  chain 
resilience efforts with wider industrial policy goals. 

•  Extend state aid flexibilities of the Clean Industrial Deal to the automotive 
sector,  for  example  by  allowing  aid  for  initial  investments  to  extend 
capacity or adopt new technologies. 

To effectively implement the actions, regional stakeholders can: 

•  Actively facilitate industrial projects by streamlining site identification and 
permitting processes for recycling, dismantling, and battery manufacturing 
facilities,  as  well  as  ensuring  that  suitable  land  and  utilities  are  made 
available. 

•  Encourage cluster-based approaches that bring together OEMs, suppliers, 
research institutes, and public administrations to co-develop solutions and 
share infrastructure. 

•  Support  private-public  partnerships  and  transnational  projects  to  anchor 

new value chains, scale innovations and reduce fragmentation. 

4.3.4  Skills and social dimension 

Regional  authorities are  engaged in diverse initiatives to  support  workers. Key 
opportunities  lie  in  equipping  the  workforce  with  future-ready  skills,  boosting 
youth participation, and fostering inclusive strategies that support older workers. 
However,  the  results  also  show  persistent  challenges:  weak  foresight  capacity, 
funding mechanisms that are often reactive rather than anticipatory, and structural 
barriers such as uneven access to retraining opportunities. 

To effectively support regions, the Commission can: 

•  Prioritise anticipatory funding for upskilling, rather than intervening only 
once job losses occur. In that sense, the legal amendments to EGF for earlier 
mobilisation of the fund and to ESF+ to support reskilling suggested in the 
Action Plan constitute some steps in the right direction. 

•  Ensure  that  the  European  Fair  Transition  Observatory  evolves  into  a 
practical  tool  that  not  only  monitors  trends  but  generates  actionable 
intelligence to inform regional strategies. 

•  Co-finance  regional  vocational  centres  and  target  support  for  SMEs  that 

lack in-house training resources. 

To effectively implement the actions, regional stakeholders can: 

47 

 
 
 
 
 
•  Develop regional skills roadmaps that align with projected industrial shifts 
(e.g.  battery  production,  software-defined  vehicles)  and  ensure  these 
roadmaps are linked to funding mechanisms and training institutions.  
•  Leverage  partnerships  with  universities,  vocational  schools,  and 
employment  services  to  expand  retraining  offers  and  ensure  that  both 
technical and transversal skills (e.g. cybersecurity, customer management, 
digital maintenance) are covered. 

•  Establish early warning systems (using Observatory data) to identify at-risk 

groups and target support before layoffs occur. 

•  Invest  in  youth  outreach  and  inclusion  strategies,  such  as  mobility 
immersion  programmes  or  campaigns  to  attract  underrepresented  groups 
into the sector. 

4.3.5  Market access and supportive business environment 

Results  confirm  that  regional  stakeholders  view  this  pillar  as  strategically 
important, though fewer ongoing initiatives are reported compared to other pillars. 
The  strongest  demand  concerns  regulatory  simplification  and  improved 
international trade conditions. Stakeholders stress that excessive bureaucracy and 
inconsistent  rules  hinder  competitiveness,  particularly  for  SMEs.  In  addition, 
concerns about competition from Chinese EV imports underscore the importance 
of trade defence instruments and fair market practices. Moreover, low regional 
capacity to engage with trade-related opportunities remain significant. 

To effectively support regions, the Commission can: 

•  Prioritise  regulatory  simplification  to  reduce  administrative  burdens  on 

firms, especially SMEs. 

•  Develop  capacity-building  programmes  to  help  regional  authorities  and 
companies  understand  and  apply  trade  defence  measures,  FTAs,  and 
regulatory changes. 

•  Support  SMEs  in  meeting  compliance  requirements  (e.g.  rules  of  origin 
under  FTAs)  and  in  strengthening  export  readiness,  through  targeted 
funding. 

•  Provide clear frameworks for inbound FDI, including conditions linked to 
sustainability and resilience, to ensure that investment contributes to long-
term competitiveness. 

To effectively implement the actions, regional stakeholders can: 

•  Create  one-stop-shop  platforms  for  investment  and  export  promotion, 
where agencies provide legal, regulatory, and advisory services tailored to 
the automotive sector.  

•  Establish trade monitoring units within industry clusters to anticipate risks 

and coordinate regional responses.

48 

 
 
 
 
•   

Annex I: bibliography 

ACC (2025) Billy-Berclau Gigafactory. 

ACEA (2024) The Automobile Industry Pocket Guide 2024/2025. 

ACEA (2025) Economic and Market Report Global and EU auto industry: Full 
year 2024. 

Audi MediaCenter (2025) Audi Brussels: social plan agreed. 

Automotive Regions Alliance (2025) Munich Declaration. 

Autonomous  Community  of  the  Basque  Country  (2023)  Ley  11/2023,  de  9  de 
noviembre, de movilidad sostenible de Euskadi. 

Barcelona  Digital  City  (2025)  Jobs  generated  by  international  tech  hubs  in 
Catalonia up by 22%. 

CE Interim (2025) Italy’s Auto Crisis: Stellantis Output Drops 37%. 

CLEPA  (2025)  Data  digest  #18  Job  losses  escalate  as  demand  stays  below 
expectation. 

CLEPA  (2025)  Data  digest  #20  Factory  closures  overshadow  EU’s  mobility 
transition. 

Capgemini (2023) Sustainability in automotive: from ambition to action. 

Cluster Lombardo della Mobilità (2025) CARBURANTI RINNOVABILI PER 
LE FILIERE PRODUTTIVE DELLA MOBILITÀ IN LOMBARDIA. 

Cresti  et  al.  (2025)  Vulnerabilities  and  capabilities  in  the  EU  Automotive 
industry: Leveraging Input-Output Analysis and Economic Complexity. 

Data  Insights  Market  (2025)  Automotive  3D  Printing  Market  Drivers  and 
Challenges: Trends 2025-2033. 

Dernières Nouvelles d’Alsace (2023) Thyssenkrupp crée 150 emplois en Alsace 
pour des moteurs Mercedes. 

Electrive (2025) Northvolt discontinues production at its main plant in Sweden. 

Eureporter (2021) €1.4 million from European Globalization Adjustment Fund to 
support dismissed workers in automotive sector in Spain. 

Eurofound (2025) Employment in the EU’s automotive sector. 

European Alternative Fuels Observatory (2025) New EU Recommendations Call 
for Affordable, Accessible, and Fair Mobility Across Europe. 

49 

 
European Commission (2023) European Globalisation Adjustment Fund helped 
13,000 dismissed workers to re-train and get back into employment. 

European Commission (2025) Alternative fuels: €422 million of EU funding to 
boost zero-emission mobility. 

European Commission (2025) Boosting the European car sector. 

European  Commission  (2025)  Commission  proposes  broader,  faster  EU  social 
and employment funds. 

European Commission (2025) Decarbonise Corporate Fleets. 

European Commission (2025) Industrial Action Plan for the European automotive 
sector. 

European  Commission  (2025)  Mapping  the  impact  of  industrial  decline  on 
European regions. 

European Commission (2025) Recommendation (EU) 2025/1021 of 22 May 2025 
on transport poverty: ensuring affordable, accessible and fair mobility. 

European  Commission  (2025)  Recommendations  for  Member  States  to  help 
tackle transport poverty and promote fair, sustainable moblity. 

European Committee of the Regions (2024) State of play and future challenges of 
automotive regions. 

Forbes (2024) 3D Printing Takes On New Automotive Dimensions. 

Generalitat de Catalunya (2025) Electric Vehicle Promotion Plan 2025-2030. 

Ground news (2023) Herrlisheim. Thyssenkrupp creates 150 jobs in Alsace for 
Mercedes engines. 

Interempresas (2025) Hispano Suiza inaugura su box permanente en el Circuit de 
Barcelona-Catalunya 

Interreg  Central  Europe 
central.eu/projects/drive2transform/ 

(2025)  Drive2Transform:  https://www.interreg-

Itonics (2025) Automotive industry trends. 

Kronen Zeitung (2024) Opel plant in Aspern closes for good on Friday. 

Kunsmann  &  Latmathe  (2025)  Car  ownership  versus  carsharing?  An  analysis 
comparing socio-economic and policy factors of carsharing and car ownership in 
Case Studies on Transport Policy. 

Land  Baden-Württemberg 
Württemberg (Landesmobilitätsgesetz - LMG) vom 18. März 2025. 

(2025)  Mobilitätsgesetz  des  Landes  Baden-

Le  Journal  des  Entreprises  (2024)  ACC  lève  près  d’un  milliard  d’euros  pour 
l’extension de sa gigafactory dans le Pas-de-Calais 

Les Nouvelles de Vénissieux (2023) Navya proche de la sortie de route. 

50 

 
L’usine  nouvelle  (2023)  Verkor  inaugure  en  grande  pompe  son  centre 
d’innovation dédié aux batteries électriques à Grenoble. 

McKinsey  (2025)  A  new  ‘ERA’:  An  action  plan  for  the  European  automotive 
industry. 

McKinsey  (2025)  European  automotive  industry:  What  it  takes  to  regain 
competitiveness. 

Möring-Martínez,  Senzeybek,  Jochem  (2024),  Clustering  the  European  Union 
electric  vehicle  markets:  A  scenario  analysis  until  2035  in  Transportation 
Research Part D. 

NOS Nieuws (2024) Laatste beetje hoop op toekomst VDL Nedcar vervliegt. 

Nieuws VDL Mast Solutions (2023) VDL Nedcar to reduce number of employees 
by 2,000 by 1 March 2024. 

RTBF (2025) Fermeture d’Audi. 

Reuters (2024) Verkor gets over 1.3 bln euros in financing for Dunkirk EV battery 
gigafactory. 

Reuters (2025) Snapshot of China's critical mineral export controls. 

Reuters (2025) Stellantis Italy output falls 37% in 2024, car production hits 68-
year low. 

Seenews (2022) Bulgarian EV maker Sin Cars to expand production to Romania. 

Supply Chain Digital (2025) Supply Chain Issues and Market Shifts Challenge 
Automakers. 

Transport & Environment (2024) Carmaker’s EV investments: Is Europe falling 
behind? 

Transport&Environment (2025) Plugging the gap: How to close the AFIF funding 
gap in 2026/2027. 

Yle  (2024)  Varkauden  akkutehtaalle  suunnitteilla  miljoonainvestointi  ja  uusia 
työpaikkoja. 

. 

51 

 
 
 
 
Annex II: description of the survey 

The survey consists of several interconnected sections, with activations that filter 
different  questions  based  on  the  respondent's  answers.  After  collecting 
background  information  (e.g.,  country,  NUTS-2  region,  role  of  the  automotive 
sector  in  their  region),  respondents  are  asked  to  evaluate  their  region’s 
engagement  across  the  five  key  pillars  of  the  Action  Plan:  1)  Innovation  and 
digitalisation; 2) Clean mobility; 3) Competitiveness and supply chain resilience; 
4)  Skills  and  social  dimension;  and  5)  Market  access,  level  playing  field  and 
economic security. 

For each pillar, the survey includes a logic filter where questions are shown only 
if  the  respondent  identifies  that  pillar  as  strategically  relevant,  has  initiatives 
underway or in discussion, or sees itself playing an active role (for more detail, 
please see the copy of the questionnaire below). This ensures the questionnaire is 
tailored to the region’s involvement and avoids unnecessary questions. Each pillar 
section explores: 

•  The relevance of specific EU actions to the region; 
•  Existing or planned regional initiatives; 
•  Implementation needs and challenges; 
•  Potential for sub-national implementation; 
•  Use of funding instruments and support mechanisms; 
•  Capacity gaps and stakeholder coordination. 

The primary target group includes regional authorities and public bodies in EU 
regions  with  a  strong  automotive  presence.  This  included  members  of  the 
Automotive Regions Alliance (ARA) and non-ARA regions. These regions are 
directly involved in or impacted by the restructuring of the automotive industry 
and are best placed to provide relevant insights.  

The following questionnaire was distributed: 

Background information 
This  section  collects  basic  information  about  your  region.  It  ensures  the  representativeness  and 
contextual relevance of responses. 

1.  Country: (Drop-down menu of EU Member States) 

2.  Region (NUTS 2): (Drop-down menu) 

3.  What parts of the supply chain does the automotive industry in the region mostly 

consist of? (Select all options that apply) 

o  Raw  materials  –  tier  3  suppliers  (basic  materials  that  are  used  to  produce 

components or systems for vehicles, such as metals, plastics and rubber) 

52 

 
 
 
 
 
 
 
 
o  Components – tier 2 suppliers (parts that are produced from raw materials which are 
used  to  make  subassemblies  or  final  assemblies  for  vehicles,  such  as  engines, 
transmissions and brakes) 

o  Subassemblies - tier 1 suppliers (groups of components that are assembled to form 

a larger unit or system for vehicles, such as chassis, body and dashboard) 

o  Final assemblies – OEMs (complete vehicles that are assembled from subassemblies 

and components, such as cars, trucks and buses) 

4.  What are the main types of vehicles produced in the region? (Select all options that 

apply) 

Light commercial vehicles 

ο  Passenger cars 
ο 
ο  Heavy-duty vehicles 
ο  Buses and coaches 
ο  Other (please specify) 

Regional Alignment with the Five Pillars of the Automotive Action Plan 
This section explores your region’s engagement towards each of the five pillars of the Automotive 
Action Plan. The pillars are first briefly described: 

• 

Innovation  and  Digitalisation:  To  be  globally  competitive,  the  European  automotive 
industry  must  urgently  regain  a  leadership  position  in  the  transition  towards  software-
enabled,  AI-powered  connected  and  autonomous  vehicles.  The  in-car  experience  for  both 
drivers  and  passengers  is  becoming  increasingly  software-defined,  with  new  applications, 
such as automated and autonomous driving, communication and infotainment playing a more 
central role. 

•  Clean  Mobility:  Road  transport  still  represents  around  one  quarter  of  the  EU’s  total 
greenhouse gas emissions. To reach Europe’s ambition to become climate neutral by 2050, 
transport  emissions  need  to  be  reduced  by  90%  by  that  date.  And  to  ensure  continued 
commercial  success,  it  is  also  critical  that  European  OEMs,  which  are  already  strongly 
investing in zero-emission technologies, regain technology and product leadership in zero-
emission  vehicles.  Zero-emission  vehicles  already  account  for  a  significant  share  of  global 
sales and eventually will be the dominant market segment. A strong home market, supported 
by adequate infrastructure across all territories, is a crucial enabler for this. 

•  Competitiveness and Supply Chain Resilience: The European automotive industry is at 
risk of losing significant market shares due to its limited competitiveness in zero-emission 
vehicle  technology  and  production  capabilities,  and  a  significant  cost  gap  in  critical 
components, particularly batteries. Batteries, which account for 30-40% of value-added of a 
typical electric passenger car, are a critical battleground for future employment and value 
creation. Europe needs a cost-competitive domestic cell production and supply chain, also 
with  a  view  to  preparing  against  supply  shocks  and  crises  and  protecting  economic 
sovereignty. 

•  Skills and Social Dimension: Recent production and demand shifts in the global economy, 
as  well  as  economic  shocks  and  geopolitical  risks  and  uncertainties  significantly  impacted 
employment  in  the  EU  automotive  sector.  Further  job  losses  are  expected  in  the  coming 
years.  Furthermore,  skills  shortages  and  mismatches  in  the  auto  industry  are  a  major 
concern, together with the ageing workforce and a pressing need to train and attract new 
profiles of workers with adequate skills. 

•  Market Access, Level Playing Field and Economic Security: The automotive industry is 
a  global  business.  Exports,  imports  and  investments  play  a  key  role  for  the  EU  industry’s 
competitiveness.  Overseas  market  access,  a  level  playing  field  vis-à-vis  overseas 
competitors,  and  a  fit-for-purpose  business  and  regulatory  environment  is  critical  for  the 
industry’s success. 

53 

 
 
 
 
5.  How  strategic  is  each  pillar  towards  the  automotive  transition?  (very  strategic, 

strategic, partially strategic, marginally strategic, don’t know) 

Pillar 

Very strategic 

Strategic 

Partially 
strategic 

Marginally 
strategic 

Don’t know 

Innovation and 
Digitalisation 

Clean Mobility 

Competitiveness 
and supply chain 
resilience 

Skills and social 
dimension 

Market access, level 
playing field and 
economic security 

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6.  Have some initiatives been taken regarding each pillar? (ongoing initiatives, planned 

initiatives, in discussion, no initiatives, don’t know) 

Pillar 

Ongoing initiatives 

Planned 
initiatives 

In 
discussion 

No initiatives  Don’t know 

Innovation and 
Digitalisation 

Clean Mobility 

Competitiveness 
and supply chain 
resilience 

Skills and social 
dimension 

Market access, 
level playing field 
and economic 
security 

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7.  What role do you see your region playing regarding each pillar? (influencer, potential 

influencer, follower, potential follower, do not know) 

54 

 
 
 
 
 
 
 
 
 
 
Pillar 

Influencer 

Potential 
influencer 

Follower 

Potential 
follower 

Don’t know 

Innovation and 
Digitalisation 

Clean Mobility 

Competitiveness 
and supply chain 
resilience 

Skills and social 
dimension 

Market access, 
level playing field 
and economic 
security 

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8.  To  your  knowledge,  which  of  the  following  financing  instruments  are  currently 
being used by actors in your region (e.g. public authorities, businesses, clusters, 
or research centres) to support the automotive sector’s transition? (e.g. in innovation 
and digitalisation, clean mobility, digitalisation, skills, or supply chains) (Select all that apply 
— approximate knowledge is sufficient) 

InvestEU (including TechEU scale-up support) 

o  EU Innovation Fund 
o 
o  Recovery and Resilience Facility (RRF) 
o  European Regional Development Fund (ERDF) or other Cohesion Policy funds 
o  Horizon Europe or Interregional Innovation Investments (I3) 
o  National state aid or industrial support schemes 
o  European Investment Bank (EIB) or national/regional development banks 
o  Private sector investment / venture capital 
o  Other (please specify): ___________ 
o  Don’t know/Not sure 

Recommended logic: filtering per pillar 
For  each  of  the  5  pillars,  include  the  detailed  section  only  if  at  least  two  of  the  following  three 
conditions are met: 

• 
• 

If 2 or more conditions are met, display that pillar’s section. 
If 0–1 condition is met, skip the detailed questions for that pillar. 

Source 

Condition 

Q1: Strategic relevance 

Answered “Very strategic” or “Strategic” 

Q2: Initiative status 

Answered “Ongoing”, “Planned”, or “In discussion” 

Q3: Role of region 

Answered “Influencer” or “Potential influencer” 

55 

 
 
 
 
 
 
 
 
 
 
 
Innovation and Digitalisation Pillar – Regional Relevance and Challenges 
This section focuses on the Innovation and Digitalisation pillar of the EU Automotive Action Plan. It 
aims to assess how relevant the actions under this pillar are to your region, identify complementary 
regional initiatives, and explore potential challenges that may affect your region’s ability to engage 
with  or  benefit  from  these  EU-level  measures.  Your  responses  will  help  build  a  clearer  picture  of 
regional  needs,  priorities,  and  capacities  in  the  transition  toward  connected,  automated,  and 
software-defined vehicles. 

9.  How relevant are the following actions under the Automotive Action Plan to your 
region’s needs, priorities, or strategic objectives? Please rate each action based on its 
policy relevance or potential added value for your region, whether or not it is currently being 
implemented (highly relevant, relevant, somewhat relevant, not relevant, don’t know) 

Action 

Highly 
relevant 

Relevant 

Somewhat 
relevant 

Not relevant  Don’t know 

Establishment of 
large-scale cross-
border testbeds for 
autonomous 
vehicles starting in 
2026 

Boost regulatory 
framework and 
single market 
integration for 
European 
Autonomous 
Driving 

Establish the 
European 
Connected and 
Autonomous 
Vehicle Alliance in 
2025 

Support research 
and innovation to 
connected and 
automated mobility 
and to develop 
next-gen battery 
technology through 
Horizon Europe 

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56 

 
 
Work with EIB 
Group and private 
sector to deploy 
TechEU investment 
programme on 
scale-ups, 
including for 
building up of the 
battery cell 
technologies 
supply chain 

Continue working 
towards sufficient 
cybersecurity 
without stifling 
innovation and 
commercialisation 

Develop economic 
security standards 

Develop adequate 
measures on 
access to vehicle 
data, functions and 
resources including 
guidance on Data 
Act and if needed, 
a legislative 
proposal on access 
to vehicle data 

Review of the 
Motor Vehicle 
Block Exemption 
Regulation 
(MVBER) and 
Supplementary 
Guidelines 

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10. You may briefly explain your answers or note if the relevance depends on specific 
regional conditions  (e.g. industrial base, workforce structure, infrastructure, investment 
plans) 

57 

 
 
 
11. Indicate which of these measures would need to be implemented at sub-national 
level and explain how this would be carried out (indicating potential challenges and the 
need for support) 

12. Are  there  regional  initiatives  on  innovation  and  digitalisation  in  the  automotive 

sector that are not covered by the EU Automotive Action Plan? 

o  Yes 
o  No 
o 

I don’t know 

13. If  yes,  please  describe  the  most  relevant  initiative(s)  in  your  region?  For  each 
initiative, please provide as much detail as possible including: title or short description lead 
organisation  or  regional  authority,  focus  area  (e.g.  testbeds,  AI,  vehicle  data,  software 
platforms), partners involved (e.g. SMEs, research  centres, OEMs), start  year and current 
status (planned, ongoing, completed), funding source(s) (if applicable) 

14. To  what  extent  do  the  following  challenges  limit  your  region’s  ability  to  engage 
with  or  benefit  from  Innovation  and  Digitalisation  actions  under  the  Automotive 
Action Plan? Please consider factors affecting your region’s capacity to align with, contribute 
to, or benefit from EU-level actions (e.g. testbeds, digital innovation, AI, connected vehicles, 
data use) (significant barrier, moderate barrier, minor barrier, not a barrier, don’t know) 

Challenge 

Lack  of  testbed  or 
demonstration 
infrastructure 

Limited  access  to 
funding  (e.g. 
EU 
Europe, 
Horizon 
TechEU) 

Insufficient 
funding 
matching capacity 

co-
or 

of 

Lack 
regional/national 
innovation 
instruments 
targeting 
connected/automat
ed mobility 

Skills  shortages  in 
AI, 
software, 
cybersecurity 

Significant 
barrier 

Moderate 
barrier 

Minor barrier  Not a barrier  Don’t know 

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58 

 
 
 
 
 
Fragmented 
collaboration 
between 
academia, 
public actors 

industry, 
and 

regional 
Limited 
engagement  in  EU 
initiatives 

Legal  or  regulatory 
uncertainty 

Limited  access  to 
vehicle/infrastructu
re data 

Other (please specify) 

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59 

 
 
 
Clean Mobility – Regional Relevance and Challenges 
This section focuses on the Clean Mobility pillar of the EU Automotive Action Plan. It aims to assess 
how  relevant  the  actions  under  this  pillar  are  to  your  region,  identify  complementary  regional 
initiatives,  and  explore  challenges  that  may  affect  your  region’s  ability  to  contribute  to  or  benefit 
from  EU-level  efforts.  These  include  the  deployment  of  zero-emission  vehicles,  the  rollout  of 
recharging and refuelling infrastructure, the decarbonisation of corporate fleets, and efforts to make 
clean mobility accessible to all. Your responses will help provide insights into how regional strategies 
and capacities align with the EU’s goal of reducing transport emissions by 90% by 2050. 

15. How relevant are the following actions under the Automotive Action Plan to your 
region’s needs, priorities, or strategic objectives? Please rate each action based on its 
policy relevance or potential added value for your region, whether or not it is currently being 
implemented (highly relevant, relevant, somewhat relevant, not relevant, don’t know) 

Action 

Highly 
relevant 

Relevant 

Somewhat 
relevant 

Not relevant  Don’t know 

Proposal to amend 
CO₂ emission 
standards for cars 
and vans (2025–
2027 flexibility) 

Accelerate review 
of CO₂ 
performance 
standards for cars 
and vans 

Recommendation 
on transport 
poverty including 
Social Leasing 
Schemes 

Communication 
and Legislative 
initiative to 
Decarbonise 
Corporate Fleets 

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60 

 
 
Targeted 
amendment of the 
Eurovignette 
Directive to extend 
the deadline to 
fully exempt zero-
emissions heavy-
duty vehicles from 
road charges 

Finalise 
interinstitutional 
negotiations for 
the revision of the 
Weights and 
Dimensions 
Directive 

Recommendation 
on fiscal and non-
fiscal demand side 
incentives 

European Clean 
Transport Corridor 
initiative 

Make available 
EUR 570 million 
under the 
Alternative Fuels 
Infrastructure 
Facility in 2025 
and 2026 

Guidance and 
Commission 
Recommendation 
on shortening grid 
connection 
procedures and 
grid connection 
prioritization 

Guiding principles 
regarding 
anticipatory grid 
investments 

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61 

 
Support to Member 
States for the 
implementation of 
AFIR and EPBD by 
the Technical 
Support 
Instrument 

Support Member 
States in putting in 
place conducive 
frameworks for 
smart / bi-
directional 
charging and 
facilitate exchange 
of best practices.  

Regulatory 
measure to ensure 
access to battery 
health information 
in the battery 
passport 

Regulatory 
measure to ensure 
access to battery 
repair and 
maintenance 
information 

Review of AFIR to 
assess options to 
further strengthen 
price transparency 
at publicly 
available 
recharging points 

Review of Car 
Labelling Directive 
enhancing 
consumer 
information 

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16. You may briefly explain your answers or note if the relevance depends on specific 
regional  conditions  (e.g.  availability  of  charging/refuelling  infrastructure,  presence  of 
major  fleet  operators  or  OEMs,  urban/rural  mobility  needs,  existing  investment  plans,  or 
transport poverty considerations) 

17. Indicate which of these measures would need to be implemented at sub-national 
level and explain how this would be carried out (indicating potential challenges and 
the need for support) 

62 

 
 
 
18. Are  there  regional  initiatives  on  clean  mobility  in  the  automotive  sector  that  are 

not covered by the EU Automotive Action Plan? 

o  Yes 
o  No 
o 

I don’t know 

19. If  yes,  please  describe  the  most  relevant  initiative(s)  in  your  region?  For  each 
initiative, please provide as much detail as possible including: title or short description lead 
organisation or regional authority, focus area (e.g. charging infrastructure, fleet retrofitting, 
social leasing, clean public transport, hydrogen or electric vehicles), partners involved (e.g. 
municipalities,  SMEs,  utilities,  operators,  research  centres),  start  year  and  current  status 
(planned, ongoing, completed), funding source(s) (if applicable) 

20. To  what  extent  do  the  following  challenges  limit  your  region’s  ability  to  engage 
with  or  benefit  from  Clean  Mobility  actions  under  the  Automotive  Action  Plan? 
Please consider factors that may affect your region’s capacity to align with, contribute to, or 
benefit 
(e.g.  deployment  of  zero-emission  vehicles, 
recharging/refuelling  infrastructure,  clean  fleet  transition,  and  equitable  access  to  clean 
mobility) (significant barrier, moderate barrier, minor barrier, not a barrier, don’t know) 

from  EU-level  measures 

Challenge 

Insufficient 
recharging or 
refuelling 
infrastructure for 
zero-emission 
vehicles 

Delays or 
bottlenecks in grid 
connection and 
capacity for 
infrastructure 
deployment 

Limited access to 
EU or national 
funding (e.g. AFIF, 
RRF, ERDF) 

Insufficient co-
funding or 
matching capacity 
at regional level 

Significant 
barrier 

Moderate 
barrier 

Minor barrier  Not a barrier  Don’t know 

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63 

 
 
 
 
 
Lack of supportive 
local/regional 
policy frameworks 
(e.g. public 
procurement, 
permitting) 

Gaps in clean fleet 
adoption (e.g. in 
public transport, 
municipal fleets, 
logistics) 

Low consumer 
affordability or 
limited uptake of 
zero-emission 
vehicles 

Skills shortages in 
vehicle 
electrification, 
charging 
infrastructure, or 
maintenance 

Limited 
stakeholder 
engagement (e.g. 
utilities, fleet 
operators, 
municipalities) 

Legal or regulatory 
complexity (e.g. 
for public fleet 
retrofitting or 
leasing schemes) 

Other (please specify) 

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64 

 
 
Competitiveness and Supply Chain Resilience – Regional Relevance and Challenges 
This section focuses on the Competitiveness and Supply Chain Resilience pillar of the EU Automotive 
Action Plan. It aims to assess how relevant the actions under this pillar are to your region, identify 
complementary regional initiatives, and explore challenges that may affect your region’s ability to 
contribute  to  or  benefit  from  EU-level  efforts.  These  include  strengthening  domestic  battery 
manufacturing and circular value chains, reducing dependence on critical inputs, supporting industrial 
investment in key components, and improving resilience to supply shocks. Your responses will help 
provide insights into how regional strategies and industrial ecosystems align with the EU’s objective 
to  maintain  global  competitiveness  and  secure  a  sustainable  and  technologically  advanced 
automotive production base in Europe. 

21. How relevant are the following actions under the Automotive Action Plan to your 
region’s needs, priorities, or strategic objectives? Please rate each action based on its 
policy relevance or potential added value for your region, whether or not it is currently being 
implemented (highly relevant, relevant, somewhat relevant, not relevant, don’t know) 

Action 

Comprehensive 
“Battery Booster” 
Package 

Facilitate joint 
private sector 
investments into 
the upstream value 
chain 

Rapid finalization 
of Co-Decision on 
the End-of-Life of 
Vehicles Regulation 

Look into financing 
support for end-of-
life vehicles and 
battery recycling 
facilities 

Further support to 
enhance recycling 

Resilience and 
sustainability 
criteria for key 
vehicle 
components 

Highly 
relevant 

Relevant 

Somewhat 
relevant 

Not relevant  Don’t know 

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22. You may briefly explain your answers or note if the relevance depends on specific 
regional  conditions  (e.g.  presence  of  battery  manufacturing  or  automotive 
component  facilities,  access  to  critical  raw  materials  or  recycling  infrastructure, 
strength of the regional supplier base, availability of industrial land and investment 
capacity, or participation in IPCEIs or strategic projects) 

65 

 
 
 
 
23. Indicate which of these measures would need to be implemented at sub-national 
level and explain how this would be carried out (indicating potential challenges and 
the need for support) 

24. Are there regional initiatives on competitiveness and supply chain resilience in the 

automotive sector that are not covered by the EU Automotive Action Plan? 

o  Yes 
o  No 
o 

I don’t know 

25. If  yes,  please  describe  the  most  relevant  initiative(s)  in  your  region?  For  each 
initiative, please provide as much detail as possible including: title or short description lead 
organisation or regional authority, focus area (e.g. battery cell or component manufacturing, 
raw  materials  processing  or  refining,  industrial  symbiosis,  end-of-life  vehicle  or  battery 
recycling,  supplier  upgrading,  circular  economy,  or  supply  chain  resilience  initiatives), 
partners involved (e.g. OEMs, suppliers, recycling firms, technology providers, universities, 
or regional clusters), start year and current status (planned, ongoing, completed), funding 
source(s) (if applicable) 

26. To  what  extent  do  the  following  challenges  limit  your  region’s  ability  to  engage 
with or benefit from actions under the Competitiveness and Supply Chain Resilience 
pillar of the Automotive Action Plan? Please consider factors that may affect your region’s 
capacity to align with, contribute to, or benefit from EU-level measures (e.g. such as battery 
and  component  manufacturing,  supply  chain  strengthening,  circularity,  and  strategic 
autonomy in key inputs) (significant barrier, moderate barrier, minor barrier, not a barrier, 
don’t know) 

Significant 
barrier 

Moderate 
barrier 

Minor barrier  Not a barrier  Don’t know 

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Challenge 

Limited industrial 
capacity for 
battery or 
component 
manufacturing 

Insufficient access 
to industrial sites 
or infrastructure 
(e.g. permitting, 
land availability, 
utilities) 

Limited access to 
EU or national 
funding (e.g. 
Innovation Fund, 
RRF, IPCEI 
support) 

66 

 
 
 
 
 
Insufficient co-
funding or 
matching capacity 
for large-scale 
investment 
projects 

Gaps in raw 
material 
availability or 
refining capacity 

Lack of regional 
recycling or 
circular economy 
infrastructure for 
end-of-life vehicles 
or batteries 

Fragmented 
coordination 
between regional 
authorities, 
industry, and 
research actors 

Limited 
participation in EU 
strategic projects 
or IPCEIs 

Skills shortages in 
battery production, 
industrial 
automation, or 
clean-tech 
manufacturing 

Other (please specify) 

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67 

 
 
Skills and Social Dimension – Regional Relevance and Challenges 
This section focuses on the Skills and Social Dimension pillar of the EU Automotive Action Plan. It 
aims to assess how relevant the actions under this pillar are to your region, identify complementary 
regional initiatives, and explore challenges that may affect your region’s ability to contribute to or 
benefit from EU-level efforts. These include addressing skills shortages and mismatches, managing 
employment  transitions  resulting  from  technological  and  structural  changes,  supporting  reskilling 
and upskilling efforts, and promoting fair labour practices. Your responses will help provide insights 
into how regional strategies and labour market policies align with the EU’s objective to ensure a just 
and inclusive transition for the automotive workforce across all territories. 

27. How relevant are the following actions under the Automotive Action Plan to your 
region’s needs, priorities, or strategic objectives? Please rate each action based on its 
policy relevance or potential added value for your region, whether or not it is currently being 
implemented (highly relevant, relevant, somewhat relevant, not relevant, don’t know) 

Action 

European Fair 
Transition 
Observatory 

Legal amendments 
to EGF and ESF+ 
Regulations 

Highly 
relevant 

Relevant 

Somewhat 
relevant 

Not relevant  Don’t know 

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□ 

28. You may briefly explain your answers or note if the relevance depends on specific 
regional conditions (e.g. structure of the regional workforce, presence of vocational 
training  or  reskilling  programmes,  exposure  to  job  losses  or  restructuring, 
participation  in  Pact  for  Skills  or  the  Automotive  Skills  Alliance,  factors  such  as 
ageing workforce, youth unemployment, poverty) 

29. Indicate  how  these  measures  would  be  implemented  at  sub-national  level  and 
explain how this would be carried out (indicating potential challenges and the need 
for support) 

30. Are there regional initiatives on skills and social dimension in the automotive sector 

that are not covered by the EU Automotive Action Plan? 

o  Yes 
o  No 
o 

I don’t know 

31. If  yes,  please  describe  the  most  relevant  initiative(s)  in  your  region?  For  each 
initiative, please provide as much detail as possible including: title or short description lead 
organisation or regional authority, focus area (e.g. reskilling or upskilling programmes, just 
transition measures for displaced workers, training in EV and battery technologies, vocational 
education  reform,  social  dialogue  initiatives,  youth  employment  schemes,  or  support  for 
vulnerable groups), partners involved (e.g. training centres, trade unions, employers, public 
employment  services,  universities,  or  social  partners),  start  year  and  current  status 
(planned, ongoing, completed), funding source(s) (if applicable) 

32. To  what  extent  do  the  following  challenges  limit  your  region’s  ability  to  engage 
with  or  benefit  from  actions  under  the  Skills  and  Social  Dimension  pillar  of  the 
Automotive Action Plan? Please consider factors that may affect your region’s capacity to 
align with, contribute to, or benefit from EU-level measures (e.g. support for reskilling and 

68 

 
 
 
 
 
 
 
upskilling,  managing  employment  transitions,  and  promoting  fair  labour  conditions  in  the 
automotive sector) (significant barrier, moderate barrier, minor barrier, not a barrier, don’t 
know) 

Challenge 

Lack of upskilling 
or reskilling 
programmes for 
automotive 
workers 

Limited 
participation in EU 
or national skills 
initiatives (e.g. 
Pact for Skills, 
Automotive Skills 
Alliance) 

Insufficient access 
to funding (e.g. 
ESF+, EGF, 
Erasmus+) for 
workforce 
development 

Weak coordination 
between public 
employment 
services, education 
providers, and 
industry 

Shortage of 
qualified training 
providers or 
vocational 
education 
institutions 

Limited regional 
data or foresight 
capacity to 
anticipate job 
losses and skills 
needs 

Structural barriers 
to workforce 
mobility or 
inclusion (e.g. low 
engagement of 
women, youth, or 
older workers) 

Significant 
barrier 

Moderate 
barrier 

Minor barrier  Not a barrier  Don’t know 

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69 

 
Limited 
engagement of 
social partners in 
workforce 
transition planning 

Other (please specify) 

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70 

 
 
Market  access,  Level  Playing  Field  and  Economic  Security  –  Regional  Relevance  and 
Challenges 
This section focuses on the market access, level playing field and economic security pillar of the EU 
Automotive Action Plan. It aims to assess how relevant the actions under this pillar are to your region, 
identify complementary regional efforts, and explore any challenges that may affect your region’s 
ability to contribute to or benefit from EU-level initiatives. These include ensuring fair competition, 
safeguarding  market  access  for  regional  businesses,  addressing  unfair  trade  practices,  simplifying 
regulatory  frameworks,  and  supporting  SMEs  in  adapting  to  regulatory  and  market  shifts.  Your 
responses will help provide insights into how regional conditions and stakeholder engagement align 
with  the  EU’s  objective  to  create  a  globally  competitive,  transparent,  and  predictable  business 
environment for the automotive sector. 

33. How relevant are the following actions under the Automotive Action Plan to your 
region’s needs, priorities, or strategic objectives? Please rate each action based on its 
policy relevance or potential added value for your region, whether or not it is currently being 
implemented (highly relevant, relevant, somewhat relevant, not relevant, don’t know) 

Action 

Explore conditions 
for inbound foreign 
investments in the 
automotive sector, 
including when 
public funding is 
involved 

Regulatory 
simplification 

Continue to pursue 
FTA and mutually 
beneficial 
international 
partnerships 
negotiations to 
enhance market 
access and 
sourcing 
opportunities for 
the EU automotive 
industry 

Develop further 
cooperation 
through Clean 
Trade and 
Investment 
Partnerships and 
Strategic 
Partnerships to 
secure better 
access to battery 
minerals 

Highly 
relevant 

Relevant 

Somewhat 
relevant 

Not relevant  Don’t know 

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71 

 
 
Engage with the 
industry and 
Member States on 
the approach 
applied to 
preferential rules 
of origin in the 
context of FTAs  

Look into defining 
specific rules of 
origin in trade 
defence measures 
for the EVs 
ecosystem 

Monitor the 
application of the 
anti-subsidy 
measure 
addressing the 
Chinese electric 
vehicle imports 
and undertake an 
anti-circumvention 
investigation when 
warranted 

Make use of the 
Trade Defence 
Instruments and 
the Foreign 
Subsidies 
Regulation to 
address unfair 
practices in the 
batteries segment 
and part segments 
where necessary 

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34. You may briefly explain your answers or note if the relevance depends on specific 
regional conditions (e.g. export orientation of local automotive firms, exposure to global 
competition,  dependence  on  foreign  investment,  administrative  capacity  for  regulatory 
implementation,  presence  of  SMEs  in  the  supply  chain,  or  experience  with  regulatory  or 
trade-related barriers) 

35. Indicate  how  these  measures  would  be  implemented  at  sub-national  level  and 
explain how this would be carried out (indicating potential challenges and the need 
for support) 

36. Are  there  regional 

initiatives  on  market  access  and  supportive  business 
environment in the automotive sector that are not covered by the EU Automotive 
Action Plan? 

72 

 
 
 
 
o  Yes 
o  No 
o 

I don’t know 

37. If  yes,  please  describe  the  most  relevant  initiative(s)  in  your  region?  For  each 
initiative, please provide as much detail as possible including: title or short description lead 
organisation or regional authority, focus area (e.g. support for SME competitiveness, export 
facilitation,  attraction  of  foreign  investment,  administrative  simplification,  regulatory 
advisory services, market access platforms, or fair competition initiatives), partners involved 
(e.g.  chambers  of  commerce,  business  associations,  export  support  agencies,  investment 
promotion bodies, legal advisory centres, or innovation hubs), start year and current status 
(planned, ongoing, completed), funding source(s) (if applicable) 

38. To  what  extent  do  the  following  challenges  limit  your  region’s  ability  to  engage 
with  or  benefit  from  actions  under  the  Market  access,  Level  Playing  Field  and 
Economic Security pillar of the Automotive Action Plan? Please consider factors that 
may  affect  your  region’s  capacity  to  align  with,  contribute  to,  or  benefit  from  EU-level 
measures  (e.g.  ensuring  fair  competition,  improving  the  business  environment  for  SMEs, 
supporting  access  to  markets,  or  facilitating  productive  and  strategic  foreign  investment) 
(significant barrier, moderate barrier, minor barrier, not a barrier, don’t know) 

Challenge 

Significant 
barrier 

Moderate 
barrier 

Minor barrier  Not a barrier  Don’t know 

Limited regional 
support structures 
for SMEs to comply 
with or adapt to EU 
automotive 
regulations 

Low awareness or 
capacity among 
regional actors to 
respond to trade-
related risks or 
opportunities 

Lack of regional 
strategies or 
frameworks to 
attract and retain 
strategic foreign 
investment in the 
automotive sector 

Limited 
coordination 
between regional 
authorities and 
national trade, 
customs, or 
competition bodies 

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73 

 
 
 
Administrative or 
regulatory 
complexity for 
local firms (e.g. in 
approval 
processes, market 
access, or 
investment 
permits) 

Fragmented or 
insufficient export 
promotion and 
support services 
for automotive 
SMEs 

Insufficient 
capacity to 
contribute to or 
align with 
regulatory 
simplification 
initiatives at EU or 
national level 

Other (please specify) 

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74 

 
 
Final Comments 
This final section provides space for any other observations, good practices, or feedback not captured 
in the previous questions. 

1.  Do  you  wish  to  share  any  final  comments,  good  practices,  or  policy  suggestions 
that  could  support  the  successful  implementation  of  the  EU  Automotive  Action 
Plan? (Open-ended) 

2.  Would  you  or  other  key  regional  stakeholders  be  available  for  a  short  follow-up 
interview (online) to further discuss your region’s role and activities in the context 
of the Automotive Action Plan? 
Please indicate below: 

o  Yes, I am available for an interview 
o  Yes, but please contact another representative in the region 
o  No, not available 

If yes, please provide: 

o  Name of contact person 
o  Organisation (full name in Latin alphabet) 
o  Email address 

75 

 
 
 
EN

ISBN 978-92-895-3956-2
doi:10.2863/8494581

QG-01-25-088-EN-N

Created in 1994, the European Committee of the Regions is the EU’s political 
assembly of 329 regional and local representatives such as regional presidents or 
city-mayors from all 27 Member States, representing over 446 million Europeans.

© European Union 2025

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