From Washington to Brussels, the Inflation Reduction Act and its Impact on the European Automotive Sector

Details

Supervisors

Defraigne, Jean-Christophe

Faculty

Louvain School of Management

Degree label

Master de spécialisation en entreprises et politiques économiques européennes

Abstract

This thesis demonstrates that the Inflation Reduction Act (IRA) is undeniably a game changer for the European automotive industry. Although it will have a significant impact on the entire value chain, its influence may be less than expected. Our study begins by examining the resurgence of industrial policies in Europe and the arguments in favour of their implementation. An overview of the European automotive sector is then put into perspective with Europe's green industrial policy. The analysis then looks at the IRA and its impact on the US electric vehicle market, before comparing it with European industrial policy. Finally, this paper examines current European responses to the IRA and proposes scenarios for a European response in the medium and long term.