European car manufacturers asked the European Union this Thursday, January 16, to avoid a “trade conflict” with the United States, four days before Donald Trump’s inauguration.
Fears of US and Chinese protectionism
A trade war could “cause considerable suffering” to the sector, stressed Ola Källenius, head of Mercedes and new president of the European Automobile Manufacturers Association (Acea), during the Brussels motor show.
Donald Trump, who will be sworn in as US president on Monday, has repeatedly threatened to dramatically increase customs duties on European goods.
During the campaign, the Republican repeatedly pledged to “steal jobs from other countries.” “I want German car companies to become American,” he even said in September.
“There have been statements,” but “the new (American) administration will take office next week,” moderated Ola Källenius.
In a letter addressed to Commission President Ursula von der Leyen, the European automobile lobby urges the EU to “try to avoid a possible trade conflict.”
“The freer and more open the markets, the better for the European car industry,” Ola Källenius told reporters, mentioning the United States and China.
For German manufacturer Mercedes, the American market represented around 15% of its global car sales in 2024.
“Flexibility” in CO2 standards
On Thursday, the automobile lobby also once again asked the European Union for “flexibility” in the policy followed to reduce greenhouse gas emissions.
European manufacturers oppose possible fines that the EU could impose on them in case of non-compliance with emissions reduction targets in 2025.
Struggling, the European car industry is struggling to sell electric cars and is calling for support measures instead of financial sanctions.
In an interview with AFP, the general director of the European automobile lobby, Sigrid de Vries, evokes an “existential” risk for the sector, while several manufacturers announce job cuts in Europe.
The electric car market is not “developing as it should.” The EU “cannot be content with having objectives on paper and being very rigid. We must adapt to real-world conditions,” he argues.
Ursula von der Leyen promised to begin consultations with the sector in the coming weeks.
Environmental NGOs, for their part, fear that the measures of the Green Deal, adopted during the previous mandate, will fall apart.
Frenchman Stéphane Séjourné, European Commissioner for Industrial Strategy, attended an automotive summit in Stuttgart, Germany, on Thursday, promising a plan to “save the sector” and “boost European demand for clean cars.”
At the end of February, initial measures could be announced to support the purchase of electric cars for company fleets or to try to secure the supply chains of raw materials and rare metals.
Source: BFM TV
