Stellantis, Volkswagen and Renault, the three major players of the European automotive industry, made a joint call to the European Union in order to protect the continent’s automotive production power and close the competitive gap with Chinese competitors. Three companies, representing approximately 60 percent of European automobile production, demand a new industrial policy focused on “Made in Europe” and stronger incentive mechanisms.
At the heart of the proposal submitted to the European Parliament is a remarkable target: At least 70 percent of vehicles sold in Europe should contain 70 percent of parts and components produced within the borders of the European Union.
European Automotive Industry Wants Protection Shield
Manufacturers emphasize that the European automotive industry is under serious pressure in the current global competitive conditions. In particular, the rapid growth of Chinese electric car manufacturers, the increase in energy costs and delays in some critical technologies are challenging the competitiveness of European-based brands.
For this reason, Stellantis, Volkswagen and Renault demand simpler and more applicable regulations that will support companies producing in Europe. While companies recommend setting the required domestic production rate at 70 percent to benefit from the “Made in Europe” criteria, they argue that this is a more appropriate threshold for the current industrial structure.
The Goal Is Not Just Assembly
The proposed “Made in Europe” approach does not only involve assembling vehicles in Europe. It is aimed to strengthen the entire value chain within Europe, from design processes to electronic systems, from battery technologies to interior materials.
According to the automotive giants, this strategy will encourage the return on manufacturing investments in Europe while also offering consumers stronger assurances of quality, reliability and supply chain transparency.
New Incentives Requested for Electric Cars
Three manufacturers state that Europe lags behind its global competitors, especially in battery production, and want stronger support for domestic battery investments. It is emphasized that this area has strategic importance since batteries are one of the largest items in electric vehicle costs.
In addition, more flexible regulations are requested for small-class electric cars. The aim is to both reduce production costs and ensure that more affordable electric cars become widespread in the European market.
The European Automotive Market Still Hasn’t Recovered
Manufacturers also point out that the European automotive market has not yet reached pre-pandemic levels. According to data, annual vehicle sales on the continent are still approximately 3 million units lower than before Covid-19.
Faced with this situation, industry representatives argue that the European Union should develop policies that will increase industrial competitiveness without compromising its environmental transformation goals.
“Super Credit” Proposal is on the Table
Another noteworthy topic among the suggestions offered by companies to the EU is the “super credit” application for electric vehicles produced in Europe. Within the scope of the plan, it is desired to provide additional advantages to European-made electric vehicles in the CO2 emission regulations that will be updated in the future.
According to experts, this initiative is seen as one of the most important signals that the European Union is preparing to develop a new industrial strategy against the increasing Chinese competition in the automotive sector. In the coming period, the “Made in Europe” label may become a strategic competitive element in the automotive industry, just like in the energy and technology fields.
Automobile Magazine – English News
Source link 2026-06-17 22:16:00
