I. Introduction The auto sector is macro-critical in a number of European countries . It comprises a large share of manufacturing, employment, and exports. For instance, in Germany—the largest auto producer in Europe—the sector constitutes about 20 percent of manufacturing, 12 percent of employment, and 10 percent of goods exports ( Figure 1 ). In some countries in Central, Eastern, and Southeastern Europe (CESEE), such as the Slovak Republic, it has an even larger footprint. The European auto industry is among the world’s biggest motor vehicle producers
cross-country variations in terms of the sales of suppliers and consumers of intermediate inputs, with some notable large players ( Figure 3 ). Germany stands out as the most important supplier and consumer of Czechia auto sector’s intermediate inputs, reflecting the ownership link between Volkswagen and Skoda Auto. On the intermediate input’s supplier side, Poland, Slovakia, and Italy are the three largest suppliers after Czechia and Germany. On the intermediate input’s consumer side, Russia, France, and Slovakia are the most important individual countries. These