A new study commissioned by the European Association of Automotive Suppliers (CLEPA) and conducted by Roland Berger highlights that European suppliers face a 15-35% cost disadvantage, stemming from high energy and labor prices, as well as regulatory burdens.

The association notes that countries like China and the US are combining industrial support measures with protectionist mechanisms, creating a structural disadvantage for the European automotive industry.

The study indicates that unless the EU takes immediate action, up to 23% of European value add will be at risk by 2030 due to powertrain transformation and value transfer outside the EU. Up to 350,000 European jobs could be lost.

CLEPA urges policymakers to address competitiveness challenges quickly and evaluate options to reduce structural costs and streamline red tape.