The Role of the European Union in the Automobile industry

The positive benefits of European integration far outweigh its imperfections.

FREMONT, CA: The EU has made it possible for Europeans to prosper by acting as a potent engine for job creation and economic progress. Automobile manufacturers now have access to a market of 500 million buyers, who gain from EU-wide competition to select among the best cars at the greatest prices.

The Four Freedoms of the Single Market

The free movement of products, people, services, and money, which is essential for the sector's competitiveness and growth, is something that automakers place a high value on. While parts and components are acquired from all throughout the European Union, final automobiles may be built in a single nation.

A single-engine block may travel through production phases in several countries and traverse EU borders up to ten times before it is installed in a car, thus without the four freedoms, the auto industry's EU-wide production and logistical activities would simply come to a standstill.

Individuals from all political backgrounds now agree that without the Single Market or following the reintroduction of border controls, our highly linked supply chains, predicated on "just in time" delivery, would not function.

A Strong International Trade Player

The exports of Europe's automakers, which are really international businesses, result in a trade surplus. Tens of thousands of employment are created and maintained through exports throughout the EU. Negative talk about "walling off" national markets and Brexit seriously jeopardises the employment outlook and expansion of the automotive sector.

It is crucial that the EU's 28 member states maintain their unity on trade-related problems. The fact that Europe speaks with a single voice that is both free and fair, respecting international laws, has significant benefits, particularly now as global commerce i Defending national interests in discussions with the United States or China would be impossible for a continent of small and medium-sized nations that trade haphazardly with one another and the rest of the globe.

Common Rules and Standards

Manufacturers would not be able to compete on an even playing field or have the security they need to make long-term investments without harmonised EU regulations.

Regardless of the nation in which it was purchased, EU regulations are essential to guarantee to consumers that their car complies with all applicable environmental, safety, and security criteria.

From tough vehicle safety criteria, EU regulatory pressure, and notably the rate at which new laws arrive and should be implemented, to strict CO₂ emission objectives and electric-car quotas. Although the expense of conducting business in 28 separate nations is significantly greater and riskier with a diverse set of norms and standards, EU decision-making is welcomed.

Preparing Europeans for the Future

It is crucial that the workforce in the sector be adequately equipped as the expanding wave of new technologies and trends redefine mobility. We can only ensure that the transformation of the whole European automotive supply chain proceeds at a sustainable rate while preserving jobs and our long-term survival by working together.