On October 27, 2025, Europe’s steel and automotive industries jointly called for a pragmatic transformation strategy to secure the region’s industrial base, safeguard millions of jobs, and sustain long-term investment. This unprecedented alliance comes in the context of mounting regulatory, competitive, and technological pressures confronting Europe’s interconnected automotive and steel sectors, which together form the backbone of the continent’s economy.

The joint statement, issued by industry leaders and major trade associations, highlights the strategic importance of both sectors for Europe’s future competitiveness. The automotive and steel industries collectively support over 15 million direct and indirect jobs across the region, driving value creation, innovation, and exporting leadership. However, persistent challenges such as rising operational costs, regulatory uncertainty, global trade disruptions, decarbonization imperatives, and import competition—particularly from Asia—threaten to erode this position.

Key among the concerns raised is the urgent need for a balanced regulatory framework that supports industry’s ongoing efforts towards decarbonization without undermining job security or investment viability. The signatories emphasize that while climate objectives and the shift to green mobility are shared priorities, they must be pursued in a manner that accounts for economic realities. Specifically, both sectors stress that disproportionate CO2 emissions targets, inflexible deadlines, and insufficient industrial policy alignment risk driving production and advanced manufacturing capabilities outside Europe’s borders.

Another major point underscored in the joint appeal is the necessary synergy between steel and automotive value chains as the transition to zero-emission vehicles accelerates. Steel remains a critical material for developing lighter, safer, and more energy-efficient vehicles including electric and hybrid models. As automotive OEMs and suppliers increase investments in battery electric platforms and advanced architectures, strong collaboration with the steel sector on material innovation and processing efficiency will be essential. However, the current surge in imported steel—often produced under less stringent environmental standards—further complicates the competitive landscape and undercuts sustainability achievements within European plants.

To address these intertwined challenges, the joint communiqué puts forward several policy recommendations. These include calling on EU lawmakers to recalibrate timelines and targets associated with the Green Deal and Fit-for-55 packages, adopt robust carbon leakage protection mechanisms such as Carbon Border Adjustment Measures (CBAM), implement harmonized incentives for local sourcing and advanced manufacturing, and foster targeted investment in circularity, recycling, and research partnerships. Both sectors advocate for accelerated permitting for transformative projects, increased support for skills development, and continuous social dialogue to ensure a fair and strategic transition for workers and communities.

This collaborative approach comes as market data points to persistent headwinds. European car and van production has contracted amid stricter CO2 regulations, high energy expenses, and external trade frictions, whilst steel producers face rising costs from emission reduction programs and competition from subsidized imports. Despite these issues, both sectors remain committed to innovation and climate ambition—provided the enabling framework gives them a level playing field.

In summary, today’s high-level joint appeal from the European steel and automotive sectors signals a critical moment for coordinated policy action. As the EU shapes the future contours of its industrial strategy, the success of Europe’s transition will rest on ensuring its foundational industries—steel and automotive—are empowered to innovate, invest, and provide high-quality employment, rather than facing prolonged decline from over-regulation and international competition. The industries urge policymakers to pursue a realistic, gradual, and inclusive path to transformation that reconciles climate objectives with crucial socio-economic imperatives. This dialogue is expected to play a central role in discussions at the upcoming European Council and in the months ahead as legislative packages are finalized.