BRUSSELS (Realist English). Europe’s automotive industry is grappling with faltering sales, high energy prices and intensifying global competition, prompting urgent crisis talks in Brussels on Friday convened by European Commission President Ursula von der Leyen.
The meeting, the third this year under the Commission’s Strategic Dialogue on the Future of the Automotive Industry, comes amid stark warnings from policymakers. EU industry commissioner Stéphane Séjourné recently described the sector as “in mortal danger.”
In an exclusive interview with Euronews, Ola Källenius, CEO of Mercedes-Benz and president of the European Automobile Manufacturers’ Association (ACEA), said the industry remains committed to zero emissions but called for a “pragmatic recalibration” of the EU’s climate policies.
“No one has a greater interest in the success of electric cars than the European automotive industry,” Källenius said. “We’ve invested hundreds of billions and launched hundreds of zero-emission models. But policy and legislation must evolve with market realities, economic conditions and the geopolitical landscape.”
He identified three systemic barriers slowing the green transition: insufficient charging infrastructure, high electricity prices, and underdeveloped power grids. “These are not trivial issues. They require concerted efforts from policymakers, energy providers and the industry itself,” he said.
Källenius argued that success depends on a more holistic EU strategy. “We need simpler, more flexible regulation, long-term consistent consumer incentives, and technology neutrality. Climate policy must also align with Europe’s broader goals of competitiveness, job creation and strategic autonomy.”
As Europe’s largest industrial sector braces for the outcome of Friday’s talks, the question remains whether recalibrated regulation and stronger support measures can avert the decline of the continent’s once-dominant car industry.
