The automotive industry in Europe faces growing challenges, from the shift to carbon-neutral technologies, disruptions in supply chains, rising competition from Asia and reduced demand for electric models. In this context, the Automotive Regions Alliance (ARA) convened for its 3rd annual political conference on 29 November in Monza, Italy, to address strategies for a just and competitive transition in the European automotive sector to maintain its global competitiveness.
The conference brought together representatives from most of the 36 member regions of the Alliance who put forward the concerns of the automotive sector in their regions and reaffirmed their commitment to decarbonising the European transport sector while strengthening regional industrial ecosystems and value creation to leave no automotive region behind.
They adopted the ‘Monza Declaration’, which reaffirms Europe’s climate ambitions and demands more EU support for the competitiveness of the automotive industry. While the ARA supports the EU’s decarbonisation goals, participants highlighted the importance of a clear and stable roadmap to guide automotive regions through this transition. The Alliance welcomed the European Commission’s emphasis on technology neutrality with a focus on electrification as key strategies for decarbonisation but emphasised the need to explore alternative climate-neutral technologies to address diverse mobility needs.
The declaration also highlights the need for coherent EU legislation to support the transition, including a stable route to meet the 2035 zero-emission targets and an early review of emissions regulations, targeted support for carbon-neutral vehicles, and infrastructure funding such as for charging points. ARA members called for ensuring EU sovereignty in vehicle data management, calling for clear regulations to foster innovation while protecting European companies and consumers. Considering the profound social and economic impacts of this transition, the Alliance highlighted the importance of regional and place-based solutions to support local economies and workers. It further called for robust funding mechanisms under the Just Transition Framework to address the challenges facing regions heavily reliant on the automotive sector.
During the conference, the region of Lombardy took over the chairmanship of the Alliance, with Grand-Est as the new vice-chair. In the coming months, the ARA aims to intensify its collaboration with the EU and other stakeholders and pledged to work closely with the CoR and the CoR Intergroup on the Future of the Automotive Industry to ensure a smooth and equitable transition for all regions and stakeholders.
Quotes:
Arianna Maria CENSI (IT/PES), Minister for Mobility of Milan and vice-chair of the CoR COTER commission: ”The European Committee of the Regions stands firmly committed to ensuring a just transition across all European regions. In the automotive sector – our industrial backbone and a driving force behind regional research and innovation ecosystems – this support is crucial. Only with robust backing from the European Union, both within and beyond cohesion policy, can we achieve a fair, competitive transition that aligns with our climate goals.”
Guido Guidesi, Regional Minister for Regional Development of Lombardy and ARA chair: ” The work of our Alliance of 36 Regions will be fundamental in trying to bring concrete proposals to the next European Commission, and ideas that will allow the automotive sector to be strategic in the future. This sector has made the continent’s economic history and today it needs corrective measures at European level to avoid an irreversible crisis.”
María Victoria CHIVITE NAVASCUÉS (ES/PES), President of the Regional Government of Navarra and outgoing ARA chair: ”Europe must provide strong, clear support to our industry with an agile response, a roadmap, and financial backing for a digital and sustainable future. We appreciate the declaration’s emphasis on a stable path in the industry to meet emissions targets, especially zero emissions by 2035. The industry needs certainty for manufacturers, suppliers, workers, and citizens. Additionally, competitiveness should not come at the cost of sustainability.”
Marco MARSILIO (IT/ECR), President of Abruzzo region and CoR rapporteur on the opinion on “A Just Transition for all EU regions”: “If we do not take a more gradual approach to the transition, we will need a massive support package to facilitate the transition of the automotive industry. Hence, also today with the Monza Declaration, we call for technological neutrality, and by it we do not only mean e-fuels but also biofuels as alternative routes to the mantra of electric vehicle.”
More information:
The Automotive Regions Alliance is an initiative of the European Committee of the Regions, consisting of 36 participating regions, that recognises the need for decisive action to achieve the EU’s climate targets. It aims to bring together regions with a strong automotive sector that want to play an active role in decarbonising the transport sector and contribute to achieving the European Green Deal targets, to ensure a just transition for automotive regions.
With the adoption of the internal combustion phase-out by 2035, the Alliance has a key role to play: the European Commission is mandated to report by the end of 2025 on what budgetary resources are needed to make this transition fair for all. The legislators commit the European Commission to base its report on the work of the Automotive Regions Alliance. The ARA will also be an effective partner in supporting the newly announced Strategic Dialogue on the Future of the Car Industry in Europe, led by President Ursula von der Leyen and supported by the new transport commissioner and former CoR president, Apostolos Tzitzikostas, to bring together stakeholders and design solutions for the industry’s deep and disruptive transition.
The just transition in Europe’s automotive regions is of central importance to the ARA and the Committee of the Regions. The CoR adopted during its October plenary session the opinion on “A just transition for all EU regions”, by rapporteur Marco Marsilio (IT/ECR), President of Abruzzo region, in which calls for targeted EU funding and a technology neutral approach to ensure a just transition that does not compromise the competitiveness of Europe’s regions and industries.
