In a formal response to a consultation by the European Commission, CESI and Fismic-Confsal highlight trade union priorities for an EU industrial action plan for the automotive sector, including:

• the need to strike a balance between environmental objectives and industrial feasibility. Regular reviews should be based on technological and market developments and applicable to the EU’s 2035 internal combustion engine (ICE) phase-out target. A technology-neutral approach should be encouraged to allow for space of power by hydrogen, e-fuels and hybrid technologies in addition to electronic vehicles (EVs.)
• developing talent and transforming workforces. The shift to EVs and digitalised manufacturing will inevitably lead to changing workforce requirements, the decline of traditional jobs and the rise of new roles. According to estimates from the European Centre for the Development of Vocational Training (Cedefop), over 2.4 million workers in the automotive sector will need to be reskilled by 2030. Lifelong learning programs, apprenticeships and vocational training must be prioritised in EU funding, providing workers the skills to work in net zero technology functions, AI-driven vehicle systems and automation.
• enhancing security of supply chain and independence of raw materials. The EU is still heavily reliant on third countries for critical raw materials including lithium, cobalt and rare earths. The 2023 Critical Raw Materials Act from the European Commission should be updated to provide stronger incentives for domestic mining and recycling projects. Public-private partnerships in battery recycling and alternative material research can help reduce import reliance.
• increasing sovereignty in batteries and semiconductors. A sustainable automotive industry needs a vibrant domestic supply of batteries and semiconductors. The EU will only meet 70% of its battery demand by 2030, according to the European Battery Alliance. The European Chips Act, with its budget of 43 billion euros for investment, should ensure that the automotive industry receives priority access to semiconductors to avoid the kind of disruptions seen during the COVID-19 crisis.
• investing in public infrastructure and charging facilities. EV charging infrastructure will need to grow massively to fulfil the EU’s ambitious climate goals. According to the European Court of Auditors (2022), the rollout of charging stations is lagging behind the adoption rates of EVs in major markets like Germany, France and Italy. Efforts must be incentivised to establish more high-speed charging networks along major transport thoroughfares and urban centres through public and private investment.
• mitigating social and regional adverse impacts. The industrial transition threatens to increasingly hit regions that rely on internal combustion engine (ICE) manufacturing particularly hard. A Just Transition Fund for automotive regions is needed to help diversify the economy during the next transformation towards new mobility, provide new jobs, and ensure social safety nets. The prospects are dire; for instance, more than 70,000 jobs are at risk in Italy alone as the ICE vehicle phase-out proceeds in line with efforts around the globe, necessitating targeted regional support.
• supporting SMEs and industrial clusters. As SMEs make up the very backbone of Europe’s automotive supply chain, they need specific support. Also, industrial clusters and innovation hubs need to be scaled to drive collaboration between SMEs and large manufacturers.
• reinforcing end-of-life vehicle recycling and the circular economy. The EU should reinforce sustainability through binding recycling targets and extended producer responsibility (EPR) schemes. According to the European Commission, end-of-life vehicle recycling could decrease automotive carbon emissions by 30%. Second-life battery applications and remanufacturing of vehicles can offer new business opportunities and negative waste.

The full consultation contribution is available here.