The European Commission has introduced a significant legislative package known as the Industrial Accelerator Act (IAA) intended to protect jobs in the automotive sector. According to the Commission’s estimation, this new act could save up to 600,000 jobs in the automotive industry over the next 5 to 10 years. The proposal includes a requirement that 70% of the components used in publicly procured electric vehicles, hybrids, and hydrogen vehicles be manufactured within the EU. Additionally, the act proposes stricter criteria regarding the origin of vehicle batteries.

Beyond the automotive sector, the IAA is projected to save and create around 150,000 jobs in other industrial sectors as well. The legislation aims not just to protect jobs but also to influence the origin of production in a way that limits carbon emissions across various industries. This is particularly crucial as the EU looks to enhance its industrial self-sufficiency in the face of challenges posed by cheaper imports from China, which threaten the local manufacturing landscape.

The ultimate goal of the Industrial Accelerator Act is to bolster European industrial resilience against external market pressures and ensure that the region can sustain its manufacturing base while transitioning towards more sustainable practices. By regulating the components and encouraging local production, the EU intends to secure the future of its automotive industry and strengthen its overall economic position in a globalized market.