For decades, Europe’s automotive supply industry has maintained a strong trade surplus as a driver of global value creation; however, today this engine is approaching a standstill.
The most striking shift is taking place in production value. China has rapidly expanded its capacity and now produces nearly twice the value-added output of the European Union. This growth, combined with rising imports from low-cost centers, is actively eroding the trade surplus that forms the backbone of Europe’s industrial strength. At the same time, a decline is being observed in exports to traditional markets such as the United Kingdom and the United States.
Benjamin Krieger, Secretary General of CLEPA, noted that these trends are rapidly undermining Europe’s role as a global powerhouse in automotive components. Krieger emphasized that, in order to remain competitive, the EU must preserve its manufacturing capacity, address structural cost disadvantages and implement targeted measures that support investment in domestic production. He warned that without decisive action, thousands of jobs could be lost and European companies may relocate their production outside the region.
As China’s automotive supply sector grows faster than ever, European suppliers are coming under increasing competitive pressure. Krieger stated that, for Europe to remain a key production hub, policies must be implemented to enhance competitiveness and ensure a level playing field for suppliers.
CLEPA announced that, under the Industrial Accelerator Act, it has set a balanced strategy as its main objective, aiming to preserve Europe’s industrial strength while promoting employment and investment.
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