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CLEPA President warns EU ‘will lag’ in 2025 outlook

Matthias Zink’s 2025 outlook is a canary in the coalmine that cautions both the automotive industry and EU.

Pressemitteilung | Reading time: min | Bildquelle: Clepa

Matthias Zink, the president of the European Association of Automotive Suppliers (CLEPA) believes that automotive suppliers and European Economy face a significant crossroads in 2025.

‘The time to act is now,’ Zink warned in his 2025 outlook. “Without policies that protect jobs while supporting the twin transition and innovation, the EU will lag.”

Previous challenges have materialised into threats, he said. According to CLEPA’s latest Pulse Check survey and Data Digest, 65% of companies are struggling to maintain profit margins above 5%, putting pressure on long-term investments, while over 54,000 jobs were lost in 2024, with impacts continuing over the next two to five years.

As our industry undergoes its transformation, we need appealing business conditions and clear pathways to achieve our goals, he said. ‘This means having regulations that welcome all technologies, cut down on foreign dependence, and help us reach climate targets faster. All of this, while facing increasing uncertainty in global politics.’

Tariffs not the long-term answer

Zink also forewarned the potential impact of US tariffs. ‘The incoming US administration is threatening Europe with tariffs and further limitations on international trade,’ he said. On the other hand, the EU's trade sanctions on China could lead to retaliation, he cautioned.

‘ It is an increasingly difficult balancing act for EU between protection and openness. But tariffs are not the long-term answer,’ he said.

‘Policymakers must work on bilateral trade agreements for the benefit and protection of all players.’


2024 review

In the outlook, which was published only a few days after the US inauguration, Zink also took to reflecting on his own first year of presidency at CLEPA.

Zink said that increased fierce global competition, depressed volumes and an overall weak demand for electric vehicles, created a perfect storm for the automobile industry in 2024. In addition to staggering energy costs, difficulties with access to raw materials and industry investments in technologies that never yielded appropriate returns, record job losses materialised, while suppliers were pushed to the brink of profitability. This all while coping with an increasing regulatory burden.

However, Zink said these difficult conditions also presented opportunities and positive momentum to build on in 2025.

Zink also said that the increased media exposure CLEPA received in 2024, helped raise awareness for industry’s significance for the European economy, benefits and challenges. Moreover, it opened communication challenges with policymakers, such as high-level roundtables with EU Commissioners Thierry Breton, Apostolos Tzitzikostas, Wopke Hoekstra, and Roxana Mînzatu or meetings with Herald Ruijters, Deputy Director-General at DG MOVE, and the EPP, alongside other automotive CEOs.

Looking forward, Zink said CLEPA will continue supporting its stakeholders and advocating for smarter, safer and more sustainable mobility in the EU. ‘For the benefit of the EU single market and its people, ’ he said.

Zink also thanked CLEPA shakeholders, members, and its 12 Top Innovators, who he said delivered ground-breaking ideas in green and digital technology across the automotive supply industry in 2024.

These challenges have materialised into threats, as we have laid out in our latest Pulse Check survey and Data Digest: 65% of companies are struggling to maintain profit margins above 5%, putting pressure on long-term investments, and over 54,000 jobs were lost in 2024, with impacts continuing over the next two to five years.

Company Info

CLEPA - European Association of Automotive Suppliers

Cours Saint-Michel 30g
B-1040 Brussels
Belgium

Telephone: +32 2 743 91 30

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