EU announces action plan to address auto industry challenges

The European Commission on Thursday said it has launched a strategic dialogue on the future of the European automotive industry and that it will form an action plan to address key challenges in the sector, ensuring it remains a major driver of economic growth.

Earlier, European Commission President Ursula von der Leyen chaired a meeting with industry leaders and stakeholders.

They discussed ways to accelerate the industry's transition to clean energy and modernize regulatory frameworks.

"The European automotive industry is at a pivotal moment, and we acknowledge the challenges it faces," said Von der Leyen, adding that this strategic dialogue will help the sector navigate future changes.

The European Commission noted in a press release that the automotive industry is a vital engine for the European economy, supporting over 13 million direct and indirect jobs and contributing approximately 1 trillion euros ($1 trillion) to the EU's GDP.

Following the dialogue, the commission will present a comprehensive action plan by March 5 to reinforce the global competitiveness of Europe's automotive sector.