PODCAST: Can Europe’s automotive sector help strengthen its defence industrial base?

This question is explored in a recent episode of the European Policy Centre’s The Language of Power podcast, featuring EFFRA Chairman of the Board Olaf Pannenbäcker, alongside representatives from the automotive sector.

The discussion comes at a critical moment for Europe. The automotive industry still the continent’s largest manufacturing employer, supporting nearly 14 million jobs and accounting for around 7% of EU GDP  is undergoing profound transformation. The sector is facing simultaneous pressures from the green transition, global trade tensions, and increasing international competition, particularly from China.

At the same time, Europe is seeking to rapidly strengthen and scale its defence industrial base in response to evolving geopolitical realities and security needs. This raises an important strategic question: how can existing industrial strengths be better leveraged across sectors?

The podcast explores the potential role of the automotive industry in this context, focusing on its ability to contribute through:

• Significant production capacity and industrial scale
• Highly skilled engineering and manufacturing workforce
• Advanced technologies and digitalised production systems
• Established and resilient supply chains across Europe

Beyond these opportunities, the conversation also addresses the structural, regulatory, and cultural barriers that currently limit closer cooperation between the automotive and defence sectors. These include differences in market structures, certification frameworks, and industrial cultures built around very different end-use requirements.

A key theme emerging from the discussion is whether Europe can adapt its traditionally civilian industrial model to better reflect today’s security and resilience challenges  and how dual-use innovation could help bridge this gap.

Overall, the podcast highlights a growing recognition that Europe’s industrial ecosystems are increasingly interconnected, and that strengthening cross-sector collaboration could play an important role in reinforcing Europe’s strategic autonomy and industrial resilience.

Listen to the full episode:
https://lnkd.in/dCfazAjQ