"I am convinced that Europe should have its own electric car or e-car. 'E' for ecological: clean, efficient, and light. 'E' for economic: affordable for people. And 'E' for European: built here, in Europe, with European supply chains." The President of the European Commission, Ursula von der Leyen, has presented her proposal in this way to revitalize the European automotive sector. A sort of rescue plan for an area that is key to the community's economy and is increasingly threatened by international manufacturers, especially from China.
So much so, that Von der Leyen made a direct reference to the Asian country during her State of the Union address. "We cannot allow China and other countries to conquer this market," she pointed out, adding that "millions of Europeans want to buy European cars at affordable prices. Therefore, we must invest in cheap and small vehicles that also meet the increasing global demand."
1.8 billion batteries
In this regard, she made a second announcement as it is the intention of the European Commission to mobilize "an investment of 1.8 billion euros for battery production" in the Old Continent, as these are strategic elements that "are directly related to our independence."
Both initiatives represent an unofficial start to the meeting that will take place this Friday between Von der Leyen and her team with the European associations of car manufacturers (Acea) and components (Clepa). The meeting will follow up on the one that took place at the end of January and, above all, on the shock plan that the EC announced at the beginning of March and is structured in three main blocks.
March plan
Firstly, the delay in meeting the new CO2 emission targets from 2025 to 2027, as they would have meant fines of up to 15 billion euros for the sector. Secondly, the implementation of aid plans for the purchase of electric cars, although in this point the Commission left the initiative to the different countries, instead of a pan-European program, as requested by the industry. And lastly, the boost to local battery production.
The latter are key within the electric vehicle value chain, but they are clearly dominated by Asian companies, especially Chinese. The first major project of this kind, that of the Swedish Northvolt, ended in bankruptcy before absorbing the planned 10 billion investment. But projects like those of Volkswagen (with plants in Germany and Valencia), Renault in Northern France, or the one that Stellantis and the Chinese CATL are building in Zaragoza are progressing well.
Review of the 2035 ban
During her speech, the President specifically referred to the March plan. "At the beginning of the year, we granted this sector greater flexibility to achieve its 2025 goals, a solution that is working. And, regarding technological neutrality, we are already preparing the review for 2035." She was referring, in particular, to the ban on selling combustion engine cars from that year, which, everything indicates, will be relaxed.
Therefore, almost all the industry's latest major demands would be met. Several were outlined in a letter sent to Von der Leyen by the presidents of Acea, Ola Källenius, and Clepa, Matthias Zink. "To stay on course in the car transition, we must go beyond idealism and recognize current industrial and geopolitical realities. Meeting the strict CO2 targets for cars and vans in 2030 and 2035 is not feasible in today's world," the letter stated. Therefore, among many other measures, they requested that the transition to decarbonization even admit highly efficient thermal cars.
So far in 2025, the sale of battery models is growing substantially in the EU, but their share is still only 15.6% (half in Spain), compared to 28% for pure gasoline models and almost 35% for plug-in hybrids.
What is an e-car?
Regarding e-cars, it would be a mistake to think that the European automotive industry can rely exclusively on this type of cars. But it is an important step forward in its survival, as it is a type of vehicle where it shows great strength. Last May, the former CEO of Renault, Luca de Meo, and the President of Stellantis, John Elkann, warned that if the EU does not implement policies that favor the production and sale of popular and accessible cars, their companies will have to make "painful decisions regarding factories in the next three years."
On this matter, Elkann regretted that if in 2019 there were 49 cars available for less than ¤15,000 and a million units were sold; today there is barely one left and sales have dropped below 100,000 units. And just yesterday, the top executive for Europe at Stellantis, Jean Philippe Imparato, reiterated an old industry discourse: "encouraging buyers to trade in their old cars for new efficient models and creating a new category that allows for the sale of small internal combustion engine cars at a lower cost would reduce emissions without having to rely on expensive electric models."
Although it remains to be seen which cars Brussels wants to promote. The minimum should start from something similar to the tiny and successful Japanese kei cars; or even reach small utility vehicles like the Renault Twingo and VW ID.1 and even those from Cupra, Skoda, and Volkswagen that will be manufactured in Spain. Additionally, it would be important to provide them with certain privileges, whether access or parking in a large city, as a way to boost their sales. And crucially: a formula of consensus with countries like Germany, specialized in large and many premium brand cars.
'Buy European food'
In the same speech before the European Parliament, Von der Leyen also presented another revitalization program for the agricultural sector: a new campaign she has named 'Buy European food'. "Because we can say, with all pride, that our European food is the best in the world," stated the President of the Commission.
"In Europe, we have access to high-quality food that our excellent farmers, breeders, and fishermen obtain at affordable prices. These professionals are also the custodians of our lands and oceans and our biodiversity. The key to our food security. But currently, they face headwinds: from high input costs to bureaucracy or unfair competition," detailed the head of the community's executive.
"Farmers have the right to receive a fair price for the food they produce and to obtain fair profits to support their families. We will review the application of our legislation on unfair commercial practices," she emphasized.