Posted on 23 Oct 2025
Europe’s steel and automotive industries on Wednesday called on the European Union to take a “realistic and pragmatic pathway to transformation,” as policymakers prepare for a meeting to discuss decarbonisation and competitiveness.
The European Council will meet on 23 October in Brussels, Kallanish notes. It follows multiple rounds of strategic dialogues with both industries.
According to the automotive trade body ACEA and its steel counterpart Eurofer together the two sectors form the backbone of Europe’s industrial strength, driving innovation across value chains. The automotive industry supports over 13 million jobs, while the steel sector supports over 2.5m direct and indirect jobs.
“The two sectors urge EU leaders to seize the moment at the European Council to set the right framework for a fair and feasible industrial transformation – one that safeguards jobs, ensures competitiveness, and delivers on Europe’s climate goals,” they say in a joint statement.
At present, the European steel industry suffers from “alarmingly low capacity utilisation” due to global overcapacity, high energy and carbon costs, plus subdued domestic demand. The automotive industry is the second-largest steel consumer, but a slower recovery of EU car markets since the pandemic and an ageing vehicle fleet are weighing on new steel demand.
“You cannot build a competitive European car without competitive European steel,” comments Ola Källenius, president of ACEA and ceo of Mercedes-Benz Group.
“Smart regulation can create a win-win for both sectors – for example, by recognising and rewarding carmakers that voluntarily source low-carbon steel and materials as part of their CO2 compliance,” he adds, without elaborating. “That’s how we turn climate ambition into industrial strength.”
Earlier in the month, ACEA’s director general Sigrid de Vries, argued that the European Commission’s proposed measures on European steel imports “go too far in ring-fencing the European market.”
The association said then that it welcomed the need for “some level” of protection for the steel industry, but there needs to be a “better balance” so that safeguarding parameters such as the new rule of origin based on the “melt and pour” principle don’t restrict imports further and create a “massive” administrative burden for European users of imported steel products.
Although the automotive industry sources around 90% of its direct steel purchases in the EU, some carmakers still need to import certain quantities and qualities of steel.
“A strong domestic steel production is vital for the supply chain resilience of the EU automotive industry,” says Henrik Adam, president of Eurofer, pointing to international volatilities in security of supply.
Source:Kallanish
