Car factories across Europe are cutting jobs as Chinese-made vehicles flood the market. MEPs clashed sharply in a Parliament debate over how Brussels should respond. For an industry that must change engine while still driving at full speed, the stakes could not be higher.
The Commission defended its new industrial strategy in the chamber, arguing that stronger European battery production and local manufacturing would help the sector compete. Several MEPs pushed back, blaming Brussels’ own climate rules for deepening the crisis and calling for a rethink of the pace of the electric transition.
Stéphane Séjourné, Executive Vice-President of the Commission, described the threat posed by China as acute. “Mass imports of Chinese vehicles, over 15 per cent of electric vehicles in Europe, paints a picture where we can see factories going slow and about to lay people off. So it is urgent,” he said. “The Commission has recognised that since the beginning of our mandate, we’ve had a strategic dialogue right through the sector on putting forward a true industrial policy for the sector.”
The Commission wants a broader automotive package to respond to the crisis. It would support European battery production, help lower the cost of electric vehicles, and strengthen local manufacturing. Séjourné urged Parliament and the Council to adopt the proposed measures as well.
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A fight over Europe’s car future
The debate centred on a simple question. Should Europe move faster on the electric transition? Or should it give automakers room to keep other technologies alive? Supporters of the Commission’s approach said the global market is already moving towards electric cars. They warned that Europe risks falling behind China if it delays. Several MEPs said the issue is no longer whether cars will become electric. The real question is where they will be built.
Right-wing and conservative speakers took a different view. They cited rising energy prices, regulatory burden, and the proposed 2035 ban on new combustion engine vehicles. They called for greater technological neutrality. Klara Dostálová (PfE/CZE) said the Commission had identified the right problem. But she said it had provided the wrong answer. “The Commission speaks of competitiveness, but it preserves a regulatory framework which systematically weakens this industry. It speaks of simplification, but creates more and more hurdles,” she said.
Several MEPs argued that manufacturers should not be forced into one technology. Hybrid cars, synthetic fuels, and other options should remain part of Europe’s industrial strategy, they said.
Jobs dominate the debate
Employment was the most sensitive issue in the debate. MEPs cited job losses at leading manufacturers and suppliers. These included Volkswagen, Stellantis, and various component makers. They insisted Germany was not alone in the crisis. The European automotive supply chain stretches across central, eastern, and southern Europe.
For the Commission, the answer is to bring more production back to Europe. That means more European batteries, more European components, and stronger demand for European-made cars. The Commission wants public money to favour vehicles made with European components. This could apply to public procurement and purchase subsidies. Séjourné argued that a European vehicle should be defined by the share of European components in production.
That idea was supported across the political spectrum. But MEPs are divided on what should come next. The Left and the Greens linked support to state aid, quality jobs, and workers’ rights. Conservative and right-wing parties wanted more flexibility on climate rules and technology choices.
A test for EU industrial policy
The automotive crisis has become a critical test for the EU’s wider industrial policy. The Commission wants to keep its climate goals while helping businesses stay competitive. Critics say that is not enough. They argue that Europe cannot defend its car industry if it keeps rules that raise costs and limit technology choices.
Mass imports of Chinese vehicles, over 15 per cent of electric vehicles in Europe, paints a picture where we can see factories going slow and about to lay people off. So it is urgent.
— Stéphane Séjourné, Executive Vice-President of the Commission
Brussels fears the consequences of standing still. Without European progress, Chinese manufacturers could dominate the next generation of cars. At the same time, the green transition may deepen industrial decline. Its benefits are not spread equally among all workers.
