European Commission favours more EU funds for electric vehicles sector

Feintool International Holding AG

03/12/2024 12:30

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      Signs of slower-than-expected shift to EVs
    

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      Weakness in Europe autos sector has hit jobs
    

  
       BRUSSELS, Dec 3 (Reuters) - The European Commission
called on Tuesday for an additional 1 billion euros ($1.1
billion) of EU funds to be made available to support electric
vehicle battery cell manufacturing, as the EV sector shows signs
of pressure.
    This would form part of an overall 4.6 billion euros set
aside from the EU's Innovation Fund to boost net zero
technologies and renewable hydrogen in the bloc, the Commission
said.
        European electric vehicle makers face fierce competition
from Asia in particular and demand has lagged expectations,
which in turn has hit jobs in the region.
    "As promised, we're already delivering for European citizens
and businesses. We are investing 4.6 billion euros to back
cutting-edge European projects in net-zero technologies,
electric vehicles batteries and renewable hydrogen," EU
Commissioner Wopke Hoekstra said in a statement.
    European carmakers have been struggling with weak demand and
a slower-than-expected shift over to electric vehicles, while
also trying to fend off competition from China. The European
Union has proposed raising tariffs on Chinese-built EVs to
counter what it says are unfair Chinese subsidies.
    On Tuesday, Swiss automotive supplier Feintool  FTON.S  said
it would close one of its sites in Germany and cut its workforce
by as many as 200 people due to weakness in demand for electric
vehicles and uncertainty over the shift to renewable energy.
    
($1 = 0.9506 euros)

 (Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)
 ((sudip.kargupta@thomsonreuters.com;))