Ahead of the European Council meeting on October 23, 2025, Europe’s automotive and steel industries - represented by the European Automobile Manufacturers’ Association (ACEA) and the European Steel Association (EUROFER) - issued a joint statement calling for a realistic and pragmatic pathway to industrial transformation to keep production and investment in Europe.
These industries, which support over 13 million jobs in automotive and 2.5 million in steel, both drive innovation and technological progress across supply chains, the statement said.
Interdependence of steel and automotive
Highlighting the mutual dependence between the two sectors, the statement noted that the automotive industry is the second-largest user of steel in Europe, while a significant portion of the steel industry’s R&D is dedicated to automotive applications.
However, both industries face overlapping challenges - global steel overcapacity, high energy and carbon costs, and weak domestic demand - while Europe’s car market continues to recover slowly from the pandemic.
“Time to translate ambition into concrete measures”
After several rounds of Strategic Dialogues with the European Commission, ACEA and EUROFER said it is now time to translate ambition into concrete measures to restore competitiveness. “A strong domestic steel production is vital for the supply chain resilience of the EU automotive industry,” Henrik Adam, president of EUROFER, said.
“You cannot build a competitive European car without competitive European steel. Smart regulation can create a win-win for both sectors - by rewarding carmakers that voluntarily source low-carbon steel as part of their carbon compliance,” added Ola Källenius, president of ACEA.
ACEA and EUROFER urge EU leaders to use the upcoming European Council to establish the right framework for an industrial transition that:
- safeguards employment across both sectors,
- ensures competitiveness and supply chain resilience,
- aligns industrial policy with Europe’s climate and energy goals.
The statement reinforces the goals of the European Action Plans on Automotive and Steel, calling for policies that transform climate ambition into industrial strength and long-term sustainability for Europe’s manufacturing base.