Brussels – “You cannot build a competitive European car without competitive European steel.” It is in the words of Ola Källenius, President of ACEA, the sense of urgency that the business world is feeling and which is being conveyed to the heads of state and government. In the run-up to tomorrow’s (October 23) European Council summit, which will also discuss competitiveness. The head of the European Automobile Manufacturers Association breaks into the political debate and in the preparations for the proceedings with a joint note that sees a new alliance between the steel and automotive worlds.
ACEA and Eurofer come together to demand a change of pace. The world of car manufacturers, which includes brands such as Stellantis, Volkswagen, and BMW, comes together with the steel world, with names like ThyssenKrupp, Arvedi, Acciairie d’Italia, and Riva. Together, the two sectors support over 15 million jobs (13 million in the automotive industry, over 2.5 million in steel) between direct employment and induced employment. They are interconnected, as the automotive industry is the second-largest user of steel after construction, and a significant share of the steel industry’s research and development focuses on automotive applications.
All this leads to a joint call for a “realistic and pragmatic path towards transforming and maintaining investment in Europe.” Hence, the joint call for EU heads of state and government to “define the right framework for a fair and feasible industrial transformation that safeguards jobs, ensures competitiveness, and achieves Europe’s climate and resilience goals, as set out in the European action plans for the automotive and steel industries”.
The industry is therefore watching and studying the moves of legislators, both national and European. A “solid” domestic steel production, recalls Eurofer chairman Henrik Adam, “is crucial for the resilience of the EU automotive industry’s supply chain, as it provides a reliable local source, reduces dependence on potentially volatile international markets, and ensures security of supply for the automotive industry,” which is crucial for Germany, and by extension for the eurozone economy.
English version by the Translation Service of Withub
