The European Commission wants to reinforce the automotive industry's competitiveness and sustainability heading towards 2020, therefore it presented a new CARS 2020 Action Plan. Among other measures, the plan intends to provide a massive innovative push by streamlining research and innovation under the European Green Vehicle Initiative.

The CARS 2020 Action Plan aimed at reinforcing this industry's competitiveness and sustainability heading towards 2020 was presented by the European Commission. Among the proposes measures within the plan, the Commission suggested to give a massive innovative push by streamlining research and innovation under the European Green Vehicle Initiative. Co-operation with the European Investment Bank will be reinforced to finance an innovation boost and facilitate SME access to credit. An EU standard recharging interface will provide the regulatory certainty needed to facilitate a breakthrough for large scale electric car production. In June 2012, the Commission announced concrete actions that will be taken to help car industry in its CARS 21 report.

The Commission also proposed to address the immediate problems in the car sector. in November, it will bring together car producers and trade union representatives and Ministers of Industry ahead the next Competitiveness Council to review measures for dealing with the present crisis in a co-ordinated way. The car industry is important throughout Europe and a European response is needed. This response should focus on addressing overcapacity, social and technological investment, as well as state aid and demand-side measures, followed by a discussion at the political level.

On the other hand, innovation in the automotive industry will also be stimulated through a comprehensive package of measures to reduce CO2, pollutant and noise emissions, to drive improvements in road safety and develop technologically-advanced intelligent transport systems (ITS).