Jens Gieseke might be the auto sector’s biggest champion in the European Parliament. The German member of the centre-right European People's Party (EPP) group pushed back hard in the Transport Committee on tough targets for carmakers under the last mandate’s Green Deal. With a new legislative package for the sector expected this week, he’s gearing up for another fight.
The past few years have been tough for European carmakers, and the workers and economies that depend on them. Last year the industry cut more than 88,000 jobs. For Gieseke, that’s a vindication of his warnings about the economic effects of the Green Deal.
“The Green Deal has been at the centre of all legislation,” the MEP told The Parliament in a recent interview. “This is a very one-sided and in a way an ideological approach, and it's a great harm to the industry.”
The package introduced requirements for carmakers to steeply cut the average emissions of their new vehicles, culminating in a complete phase-out of the combustion engine by 2035. Fines for failing to meet these targets are set to kick in soon.
These could destabilise European manufacturers’ already tight budgets, potentially resulting in job losses, Gieseke said. “A very urgent matter, which is a problem in our legislation, is that if the manufacturers do not comply with the CO2 standards. We even punish them for not reaching the goal.”
Help may be at hand. On Wednesday, the European Commission releases a new Action Plan for the Automotive Sector. When the legislation reaches the EP, Gieseke, who leads the EPP’s delegation in the Transport Committee, will push for measures to secure the European car industry’s future.
“If we fail, we will lose a core part of our industrial competitiveness, and this has consequences not only on those measures but on the whole value chain. So this is really a very serious issue for Europe,” he said.
Subsidising foreign competitors
“We really need a quick review of the CO2 standards for cars and vans, as well as for the alternative fuel infrastructure regulation,” Gieseke said.
The Commission was wrong to put so much focus on electrification, he added, which shuts the door to other paths to decarbonisation. “We want to defend a technology-neutral approach, which means that you have to not ban any technology,” he said.
Carmakers can buy credits from each other to bring their average fleet emissions into compliance. But with European manufacturers still transitioning away from combustion, and major EV based elsewhere – Tesla in the US and many from China, such as BYD – credit-swapping could be an advantage to foreign competitors.
“This would be a risk I could not accept,” Gieseke said.
The Commission last year introduced tariffs on Chinese electric vehicles, with the level varying by manufacturer. Some Chinese carmakers have responded by shifting production to Europe. BYD announced the construction of a second plant in Hungary, and Chery has signed a joint venture with a local manufacturer in Barcelona.
“If [Chinese manufacturers] produce and they follow all the standards we have, it can have a positive effect on our economy and unemployment,” he said.
Infrastructure
Despite significant investment pledges, scaling up infrastructure across the bloc has proven a challenge. A 2024 report from the European Automobile Manufacturers' Association (ACEA) found that the Netherlands, France and Germany are home to almost two-thirds of all EU charging points. That makes electric cars impractical for many car buyers elsewhere, Gieseke said.
With a more right-wing and car-friendly parliament and the Commission's new focus on competitiveness, legislation during this mandate looks likely to be more supportive of Europe’s carmakers.
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