This chapter investigates the recent transformations of the European Union’s policies in the automotive sector since the Covid crisis. The first section introduces structural data pertaining to the automobile industry in the region. The second section focuses on the set of public policy measures developed at the EU level since the outbreak of the Covid-19 crisis, which has marked a renewed interest in developing a strategic industrial policy to restructure the industry in order to confront three major challenges: Greening, digitalisation and the rise of the Chinese automobile industry. The third section highlights the lack of coordination between these industrial and commercial policies, which is revealing internal tensions between member states, business actors and EU institutions. Finally, we open the discussion on a possible return to defensive protectionism by the European Union.