The European automotive sector faces significant changes due to technological advancements and global competition. To address these, President von der Leyen launched a Strategic Dialogue for the industrys future. An Action Plan has been introduced, focusing on innovation and sustainability, with €1.8 billion allocated for a competitive supply chain for battery materials. President von der Leyen emphasized the need for domestic production to reduce dependencies and promote sustainable practices. The plan includes a European Connected and Autonomous Vehicle Alliance to advance AI-powered vehicles, backed by €1 billion from the Horizon Europe Programme. Flexibility in CO2 standards and incentives for zero-emission vehicles are also proposed. Additionally, the Commission aims to strengthen the EUs battery production and support workers through the European Fair Transition Observatory and other initiatives. Measures will be implemented to ensure the industrys global competitiveness and resilience.