EU rolls out strict used‑car rules as European auto industry faces restructuring

The European Parliament has approved a new vehicle‑life‑cycle regulation that will tighten the sale of used cars across the EU. Dealers must prove that a vehicle is not classified as "end‑of‑life" or that it holds a valid technical inspection certificate before each sale. Vehicles deemed unsuitable for circulation or recorded as total economic loss will be required to be withdrawn and recycled, preventing their re‑entry into the used‑car market. The rule also mandates that new cars be designed for easier dismantling and sets progressive targets for recycled plastic content – at least 15% within six years and 25% within a decade. Manufacturers will assume greater responsibility for collecting and recycling end‑of‑life vehicles, and five years after the regulation takes effect, exporting unfit cars will be prohibited.

At the same time, the European automotive sector is confronting a severe competitive squeeze. High energy costs, rising labor expenses, and a slower shift to electric vehicles have prompted the German Association of the Automotive Industry (VDA) to warn of deep restructuring, including plant closures and a wave of layoffs, particularly at manufacturers like Volkswagen and Stellantis. The VDA also highlighted mounting pressure from Chinese carmakers, whose hybrids and electric models are gaining market share in Europe. In response, the EU is developing a "Made in Europe" incentive framework to support manufacturers that produce vehicles within the bloc and to preserve supply‑chain jobs.