In an open letter to EU leaders, Ola Källenius, president of the European Automobile Manufacturers Association (ACEA), has emphasized the urgent need to change European Union policies to avert an industrial collapse in Europe. The letter, sent on February 9, calls for the swift ratification of trade agreements with Mercosur and India by the European Parliament. The ACEA is advocating for a supportive policy framework that facilitates increased production and investment within Europe, crucial for the survival of the automotive industry in the face of impending challenges.

Källenius highlights several key areas for reform, including simplifying the permitting process, reducing energy costs for industries, increasing labor efficiency, and providing predictable support for initial investments and ongoing operating costs. This reform is particularly essential for scaling up the production of electric vehicle batteries, a critical component in transitioning to more sustainable transportation solutions. The call to action illustrates the industry's pressing need for government support to remain competitive in a rapidly changing global market.

The letter also addresses the concerns of truck manufacturers, indicating a broader implication for various segments of the automotive industry. Källenius casts doubt on the adequacy of current policies to address these needs, emphasizing that without substantial interventions, many companies could face bankruptcy and a significant decline in the European automotive sector, which has been historically vital to the continent's economy.