The European automotive industry is a major contributor to growth and employment in the EU, with 11.6 million people working in the sector and €26 billion invested annually in R&D. However, the industry is facing a difficult situation in its home market, with sales on a downward trend for the past six years and significant cost pressures. The industry is also facing overcapacity, a high cost base, stringent and expensive legislation, growing competition from imports, and low profitability. The industry is at a critical juncture and needs to find ways to strengthen its competitiveness and global economic leadership.
