In a pressing communique released ahead of the informal EU Leaders’ Retreat on February 12, 2026, the European Association of Automobile Suppliers (CLEPA) has urgently appealed to EU policymakers to implement measures that halt the ongoing industrial exodus threatening the continent's automotive manufacturing base. CLEPA Secretary General Benjamin Krieger highlighted the severity of the situation, noting that automotive suppliers have already announced over 100,000 job cuts since 2024. This crisis is exacerbated by high energy costs, fragmented regulations, and unfair global competition, placing European producers at a structural disadvantage compared to regions with lower costs and fewer regulatory burdens.

The core of CLEPA's message revolves around the necessity for steadfast technology neutrality in policy-making. Rather than imposing restrictive mandates that favor specific technologies, CLEPA advocates for an innovation-driven approach to decarbonisation. This stance is supported by recent consumer data from Deloitte’s 2026 Global Automotive Consumer Study, which reveals that internal combustion engines remain the preferred choice for nearly half of buyers in key markets like Germany, France, and the UK. Moreover, hybrid preferences have surged to 14% in Germany and 23% in France, underscoring the market's demand for diverse powertrain options rather than a singular focus on battery-electric vehicles.

A pivotal opportunity identified by CLEPA is the upcoming Industrial Accelerator Act, which could serve as a bulwark to retain automotive manufacturing within Europe. However, its efficacy depends critically on how 'European-made' components are defined. CLEPA emphasizes the need for robust local content requirements to ensure that value creation remains onshore, preventing the hollowing out of European innovation capacity. Importing the cheapest technologies today, they argue, risks permanent dependency on foreign supply chains characterized by cheaper labor and laxer standards.

Underpinning these calls is a sobering Roland Berger study, which projects that without intervention, up to 350,000 European automotive supplier jobs could be lost by 2030 due to factors including lower-cost competition, fewer regulations abroad, unilateral tariffs, excess capacity, dumping, and subsidies. Automotive suppliers, investing €30 billion annually in research and development, are positioned as the vanguard of Europe’s green transition. Yet, for these investments to translate into scaled innovations, policies must align with real-world consumer demand and market realities.

CLEPA's advocacy extends to restoring EU competitiveness through pragmatic measures that take time to materialize, such as energy cost reductions and regulatory simplification. Local content policies are positioned as immediate necessities to bridge this gap. The association warns that without swift action, Europe risks trading industrial independence for long-term vulnerability. This plea comes at a critical juncture, with EU leaders convening to discuss industrial strategy amid mounting pressures from global trade dynamics and domestic challenges.

Further context includes the broader implications for supply chain resilience and manufacturing operations. European suppliers are grappling with rising costs across energy, raw materials, and logistics, compounded by regulatory fragmentation that hampers cross-border efficiency. CLEPA's push for regulatory batches aligned with development cycles echoes sentiments from other industry bodies, aiming to free up investments for electrification and advanced technologies. The emphasis on pragmatic green policies—balancing ambition with feasibility—is a recurring theme, ensuring that decarbonisation efforts do not undermine the very industrial base needed to achieve them.

In related developments, the automotive sector's R&D prowess is evident in ongoing advancements in EV battery technology, autonomous systems, and connected mobility solutions. However, CLEPA stresses that these innovations require a supportive ecosystem, including access to affordable energy and fair market conditions. Failure to address the competitiveness gap could accelerate de-industrialisation, particularly in entry-level segments where ageing fleets and stringent regulations like Euro 7 for heavy-duty vehicles strain viability.

Stakeholders from OEMs to tier-one suppliers are united in viewing the February 12 retreat as a make-or-break moment. Concrete outcomes, such as refined definitions under the Industrial Accelerator Act and commitments to technology openness, could redefine Europe's automotive trajectory. CLEPA's voice amplifies the sector's collective urgency, positioning suppliers not just as components of the value chain but as its resilient backbone. As Europe navigates this pivotal phase, balancing green ambitions with industrial preservation will determine whether the continent remains a global leader in automotive excellence.