Strategic Impulses for the Transformation of the European Automotive Textile Supply Chain
Guidance Papers for supply chain Stakeholders
Working Paper No. 6 – Project CarTexEurope Executive Summary Version V03 – In Progress
1. Introduction
Since January 2024, Gherzi Germany has been actively supporting the transformation of Europe’s textile industry to meet the evolving demands of the mobility sector. The initiative, CarTexEurope 2024, is backed by European structural development programs and focuses on the strategic repositioning of the textile industry towards becoming an innovative supplier for the future European automotive landscape.
Key topics include Globalization 2.0, Digitalization, Decarbonization, Autonomous Mobility, and the restructuring of supply chains. Circular economy principles and material recyclability are also emphasized, aligning with expectations from industries, consumers, and European policymakers.
Amid profound global shifts, Europe’s textile sector holds tremendous potential: by combining its production expertise with new mobility demands, Europe can play a pivotal role in shaping sustainable industries. Through surveys, interviews, and workshops, Gherzi Germany developed strategic foundations aiming to secure the textile industry’s role within tomorrow’s value chains across Europe.
Vision 2030 aspires to transform Europe’s textile hubs into leading centers of innovation, diversifying beyond automotive solutions and creating new industrial opportunities amidst sector consolidation.
2. CarTexEurope Today
The European automotive industry is undergoing a fundamental transformation, moving away from continuous growth towards consolidation and strategic reorientation. Driven by new market demands, global economic shifts, and rapidly changing consumer behaviors, traditional OEMs and supply chains face mounting pressure.
The textile sector, especially within automotive supply, faces existential challenges. Companies must rethink their business models, regardless of their dependency on the automotive sector. Inflation, consumer restraint in key markets like Europe and China, and competition from low-wage regions intensify the crisis.
Production relocations to countries such as Romania, Poland, Portugal, Morocco, and Egypt have placed high-wage regions under immense cost pressure. Consequently, European textile suppliers must rethink their strategies, focusing not solely on innovation but also on efficiency, productivity, and supply chain agility.
Despite the challenges, the crisis opens opportunities. European suppliers possess the technological expertise to diversify into future-oriented markets — provided they adopt a market-driven and economically viable approach. Innovation without market viability offers no sustainable future.
The EU Commission’s Action Plan of March 2025 underscores the importance of investment in digitalization and sustainability but insufficiently addresses structural crises within European supply chains. Europe’s textile automotive suppliers must therefore not only innovate but also develop competitive cost structures to maintain their relevance.
3. General Vision 2030 for the Sector
Transformation by 2030: Resilience Through Diversification and Strategic Renewal
By 2030, Europe’s formerly automotive-dependent textile sector will have fundamentally transformed. Companies will serve diversified markets beyond interior components like headliners, seat covers, and panels. Four business archetypes will emerge:
- Adaptation Within Consolidation: Companies remain integrated within European automotive supply chains but face global competition, requiring best-in-class process efficiency and technical excellence.
- Niche Players: Highly specialized firms will target global niches such as aviation, healthcare, and customized mobility, differentiating through technological leadership and brand storytelling.
- Regionally Autonomous Organizations (DAOs): Companies will build resilient, localized value chains within Europe, minimizing dependency on volatile global markets.
- Alliances Across Borders: Traditional producers will join international partnerships and consortiums to achieve scale, efficiency, and global reach.
Success will depend on strategic foresight, market differentiation, and attractive, flexible work models to retain and attract talent.
4. Vision 2030 — Europe as a Beacon of Industrial Transformation
By 2030, Europe aims to exemplify successful structural transformation. Through collaboration among companies, policymakers, and academia, Europe will secure employment, establish new economic perspectives, and ensure sustainable fiscal revenues.
This transformation will reflect a dynamic ecosystem where companies integrate specialized production, digital processes, and sustainable materials to compete globally.
The Vision 2030 demonstrates that traditional industries, with innovation and bold entrepreneurship, can build a resilient, future-proof industrial landscape.
5. CarTexEurope Stakeholder Landscape
CarTexEurope categorizes stakeholders into four main groups:
- Industrial Players: Textile producers, finishers, technical textile manufacturers, automotive suppliers.
- Public Institutions: Economic development agencies, environmental authorities, education, and research funding bodies.
- Academia and Research: Universities, research centers, innovation hubs.
- Associations: Trade unions and industry associations.
6. Strategic Guidance for Companies
The CarTexEurope project identifies four primary strategic paths for textile companies:
- Continuity within Automotive Supply Chains: Companies maintaining strong integration must focus on efficiency, process optimization, and international network participation.
- Specialization in Global Niches: Companies must target high-value niches (aviation, healthcare) with technological innovations, brand-driven market positioning, and premium service models.
- Regional Autonomy through DAOs: Companies will develop decentralized, self- sufficient networks, emphasizing European markets and circular economy principles (Refurbish, Recycle, Repair, Replace).
- Alliances and Verticalization: Companies will engage in international alliances, joint ventures, and mergers to ensure survival and competitiveness.
The era of “business as usual” is over. Companies must adapt rapidly or risk extinction.
7. Strategic Guidance for Research Institutions
By 2030, research institutions must move beyond subsidy-driven models to market-oriented collaboration with businesses. Key initiatives include:
- Cooperative Production Networks: Shared use of high-tech production facilities.
- Shared Workforce Models: Providing engineering and technical expertise flexibly across multiple firms.
- Supply Chain Management Services: Transitioning from pure research to practical industrial applications.
Only market-relevant research initiatives will justify their existence amid global competition.
8. Strategic Guidance for Policymakers and Associations
Europe’s policy landscape must facilitate textile sector transformation through:
- Tax and Regulatory Relief: Reducing the taxation burden on labor, incentivizing domestic production.
- Investment Incentives: Supporting sustainable technology investments and modern manufacturing.
- European Trade Policies: Establishing fair competition frameworks through selective tariffs and promoting regional production.
- Narrative Building: Promoting Europe’s image as a hub for modern, sustainable industrial production.
Europe must act decisively to create the conditions for vibrant, future-proof textile industries.
9. Strategic Guidance for Education and Training Providers
By 2030, education and training providers must:
- Develop flexible, modular programs aligned with industrial needs.
- Foster dual education systems combining practical and theoretical knowledge.
- Introduce cooperative models like “Shared Training Services” across companies.
- Integrate digitalization, AI, and agile methodologies into curricula.
Future workers must be equipped with a wide skill set for both technical and administrative roles.
10. CarTexEurope Tomorrow: Automotive as One of Many Pillars
By 2030, the European textile industry will be smaller but stronger — more productive, efficient, and resilient. Companies that embrace digitalization, sustainability, and new mobility markets will thrive.
Key areas of action:
- Productivity and Innovation: Providing vertically integrated, high-value solutions for emerging markets.
- Efficient and Resilient Supply Chains: Building diversified networks across Europe and globally.
- Future-Ready Workforce: Adopting “New Work” practices, lifelong learning, and global talent attraction.
- Cooperation and Startup Collaboration: Essential for driving innovation and maintaining competitiveness.
Transformation is inevitable. Europe must act boldly to secure leadership positions in global markets.
11. Project Structure: CarTexEurope Work Packages
CarTexEurope’s strategic foundation is structured through:
- Work Package 1/2: Baseline analysis of Europe’s automotive textile supply chains.
- Work Package 3: Identification of key success factors and barriers.
- Work Package 4: Stakeholder engagement and dialogue promotion.
- Work Package 5: Scenario development for future pathways.
- Work Package 6: Compilation of strategic guidance papers and action recommendations.
The project’s ultimate goal: securing long-term competitiveness, employment, and innovation within Europe’s textile automotive supply chains.
Disclaimer
This information bulletin has been prepared by Gherzi Germany to the best of our knowledge and professional judgment. It is intended to provide general strategic guidance for the textile industry during the ongoing PFAS transition.
However, Gherzi Germany assumes no liability for business, commercial, or strategic decisions made solely based on this document. All guidance provided herein should be viewed as directional support and does not substitute for a detailed, company-specific evaluation.
More detailed assessments, including operational feasibility, financial implications, and technical implementation, can be developed within the framework of a joint project tailored to the respective stakeholder’s role in the textile supply chain.