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    Car Industry Under Pressure: Czech Government Focuses on Flexibility and Innovation

    Together with Austria, Poland, Italy, and Slovakia, the Czech Republic is expanding the so-called Alliance for the Defence of Competitiveness

    The European automotive industry is under enormous pressure due to strict emissions regulations and growing international competition. Czech Prime Minister Petr Fiala and Transport Minister Martin Kupka have presented measures to secure the industry’s competitiveness and safeguard jobs.

    On Friday, Czech Prime Minister Fiala, Transport Minister Kupka, and MEP Ondřej Krutílek presented concrete steps to save the European automotive industry. Together with Italy, Austria, Poland, and other countries, the Czech Republic is expanding the so-called Alliance for the Defence of Competitiveness.

    ‘The Czech automotive industry is the backbone of our economy – it accounts for more than 9% of GDP and employs over 500,000 people. However, it is under serious threat due to inadequate European regulation and growing competition. Manufacturers are struggling to achieve the required sales figures for electric cars and face heavy fines that drain funding for innovation and competitiveness,’ said Prime Minister Fiala.

    Source: Škoda Auto

    ‘It is clear that the European Commission needs to adapt the current system of penalties for non-compliance with climate targets. We need to change the conditions that prevent European manufacturers from catching up with the technological lead of their competitors. European cars must remain affordable for citizens, and we must secure jobs in the car industry,’ added Transport Minister Kupka.

    This is why the Czech Republic, along with other countries, has formed a coalition to campaign for the necessary changes. ‘Together with Italy, Slovakia, Poland, Austria, Romania, and Bulgaria, we are forming an alliance in defence of competitiveness. We are seeking the participation of Germany, France, and other countries,’ said Prime Minister Fiala. ‘In order to achieve change at the European level, it is important to find partners in like-minded countries,’ added Minister Kupka.

    Foto: Toyota Motor Manufacturing Czech Republic

    Fiala outlined concrete steps that should lead to the rescue of the automotive industry. ‘We are in favour of greater flexibility in meeting emissions targets, true technological neutrality, European subsidies for infrastructure development and support for innovation, and the involvement of representatives of Czech car manufacturers in negotiations on the future. Last but not least, we are against the ban on combustion engines after 2035,’ explained the Prime Minister.

    He emphasised that the initiative to support car manufacturers, which the Czech Republic presented together with Italy at the European Council in December, had already had an impact. The European Commission had initiated a strategic dialogue on the automotive industry.

    The European automotive industry is a key sector, accounting for 7% of the EU’s GDP. The sector remains crucial for the industrial base, innovation, and employment in Europe. The automotive industry employs 13 million people across the EU.

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