Europe’s leading automotive regions signed in Bilbao on 27 May a joint political position on the two files that will shape the immediate future of the sector: the Industrial Accelerator Act and the Automotive Package. The 38 regions of the Automotive Regions Alliance (ARA) support a “Made in EU” approach as a lever to strengthen European value chains, call for a central role for regions in the design and implementation of European industrial instruments, and advocate a realistic, technology-open approach to decarbonisation that recognises the role of electrification, low-carbon materials, advanced batteries, hydrogen and sustainable renewable fuels.
Emil Boc (RO/EPP), Mayor of Cluj-Napoca and First Vice-Chair of the Commission for Territorial Cohesion Policy and EU Budget (COTER), said: “If any proof was needed, the current energy crisis shows the need to accelerate the electrification and decarbonization of the EU economy and to reduce strategic dependencies. At the same time, Europe must ensure that no region is left behind in the clean transition. The automotive sector provides direct and indirect jobs to 13.8 million Europeans and is the main source of employment in many regions across Europe. The EU must listen to the concerns of these regions, as well as continue providing targeted support to just transitions in the next long-term EU budget.”
The Bilbao Declaration is the first joint political position of Europe’s leading automotive regions on the Industrial Accelerator Act, presented by the European Commission on 4 March 2026, and on the Automotive Package, adopted on 16 December 2025. The ARA considers the Industrial Accelerator Act a key instrument to reinforce European value chains, reduce strategic dependencies and support the long-term competitiveness of automotive ecosystems across the Union.
The Declaration supports the introduction of “Made in EU” requirements, provided that they are targeted, proportionate and robust, offer legal certainty, avoid undue burdens on SMEs and regional supply chains, and remain compatible with the Union’s international commitments. The Alliance underlines that the Industrial Accelerator Act will only deliver its full potential if it is coherent with the Automotive Package, the Automotive Action Plan and the wider regulatory framework. It therefore calls for a comprehensive assessment of the implementation of the Automotive Package and its interaction with the Industrial Accelerator Act to ensure that the overall framework remains fit for purpose.
On the technological dimension of the transition, the ARA reaffirms the principle of technological neutrality as a guiding criterion for regulatory measures. The Alliance supports the European initiative on small and affordable electric vehicles as a lever to make zero-emission mobility accessible to all European citizens, while stressing that support for the transition should not rely exclusively on this initiative and should preserve manufacturers’ ability to offer a diverse and demand-driven vehicle portfolio.
The Declaration also calls for an assessment, ahead of 2035, of the role and effectiveness of sustainable renewable fuels, including biofuels, in line with the principle of technological neutrality and the objective of climate neutrality by 2050.
A central message of the Bilbao Declaration is the need for regions to play a leading role across the full cycle of European industrial policy — from the design of acceleration areas to the territorial deployment of public procurement and support schemes, as well as the monitoring of impacts on supply chains, SMEs and regional economies. The Alliance stresses that regions are not only implementation actors, but the level of government closest to the factories, suppliers and workers driving the transition.
In this context, the Declaration also calls for the co-design and co-implementation of European industrial and investment instruments together with automotive regions. It underlines the strategic importance of talent, supports the objectives of the Quality Jobs Roadmap and the forthcoming Quality Jobs Act, and calls for the integration of gender equality as a structural criterion in labour policies for the sector.
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• The Automotive Regions Alliance is an initiative of the European Committee of the Regions, consisting of 38 participating regions. It brings together regions and cluster organisations with a strong automotive and supply sector that want to play an active role in decarbonising transport, contributing to the objectives of the European Green Deal, strengthening regional industrial ecosystems and value creation, and ensuring economic and social cohesion in all regions affected by the transition.
• On 16 December 2025, the European Commission presented the Automotive Package to support the sector’s transition to clean mobility. While maintaining a clear market signal towards electrification, the package provides greater flexibility to manufacturers, notably by allowing 10% of emissions to be compensated through the use of European low-carbon steel, e-fuels and biofuels. The European Committee of the Regions will adopt its formal position in October. Rapporteur María Chivite will present the draft opinion for adoption at the COTER meeting on 24 June.•