Outlook 2025 | President’s Editorial

A happy new year to all of you. I hope you all had the opportunity to recharge over the holidays and spend quality time with your loved ones.

No doubt, a difficult year lies behind us. We have faced increasingly fierce global competition, depressed volumes and overall weak demand for electric vehicles. Moreover, energy costs have shot up, access to raw materials remains critical, and the industry’s investments in new technologies did not yield the appropriate returns. This situation has led to record job cuts and pushed many suppliers to the brink of profitability, all while coping with the increasing regulatory burden. 2024 left us in a perfect storm but also presented opportunities – and positive momentum to build on this year.

But first, let me reflect on my first year as President of CLEPA and the progress we have made in various areas. I had the pleasure of speaking at several assemblies of national supplier associations, including in Poland, Sweden and Italy. The market insights, feedback and support I gained through these visits have been invaluable. On CLEPA’s side, we were honoured to welcome and engage with our members and stakeholders at our annual events, such as the Aftermarket Conference and the Innovation Awards. I want to take the opportunity to once again congratulate our 12 Top Innovators. You showcased ground-breaking ideas in green and digital technology across the automotive supply industry. It is this innovative spirit that will help us transform our business.

“Without policies that protect jobs while supporting the twin transition and innovation, the EU will lag. ”

Over the year, we have also experienced increasing interest in our industry from policymakers and the media. Interviews with Politico, Bloomberg,  Automotive News Europe, Financial Times and many more have given me the opportunity to raise awareness of our industry’s significance for the European economy, our accomplishments, and our challenges. These challenges have materialised into threats, as we have laid out in our latest Pulse Check survey and Data Digest: 65% of companies are struggling to maintain profit margins above 5%, putting pressure on long-term investments, and over 54,000 jobs were lost in 2024, with impacts continuing over the next two to five years. This also shows that the time to act is now. Without policies that protect jobs while supporting the twin transition and innovation, the EU will lag. I believe that this media exposure has helped us to open more and more communication channels with policymakers. For example, at high-level roundtables with EU Commissioners Thierry Breton, Apostolos Tzitzikostas, Wopke Hoekstra, and Roxana Mînzatu or meetings with Herald Ruijters, Deputy Director-General at DG MOVE, and the EPP, alongside other automotive CEOs. It is encouraging to see the increased political acknowledgement and willingness to regain our industry’s competitiveness.

“Policymakers must work on bilateral trade agreements for the benefit and protection of all players.”

Yet, we see automotive suppliers and the European economy at a crossroads in 2025. As our industry undergoes its transformation, we need appealing business conditions and clear pathways to achieve our goals. This means having regulations that welcome all technologies, cut down on foreign dependence, and help us reach climate targets faster. All of this, while facing increasing uncertainty in global politics. The incoming US administration is threatening Europe with tariffs and further limitations on international trade. On the other hand, the EU’s trade sanctions on China can lead to retaliation. It is an increasingly difficult balancing act for EU between protection and openness. But tariffs are not the long-term answer. Policymakers must work on bilateral trade agreements for the benefit and protection of all players.

We, as CLEPA, will continue our path and defend our cause. Amid the biggest transformation of the industry, I feel that CLEPA, in its 65 years of existence, is stronger and more united than ever before. This gives me confidence going forward into this crucial year, together with the diligent CLEPA team in Brussels who have shown so much support, resilience, and passion since I took office. In a world full of uncertainty, we as CLEPA are here to actively support our stakeholders and advocate for smarter, safer, and more sustainable mobility for the European Union. For the benefit of the EU single market and its people.

Yours,

Matthias Zink
CLEPA President and CEO Powertrain and Chassis at Schaeffler