(Alliance News) : Stellantis, Renault, and Volkswagen have joined forces to advocate for more robust "Made in EU" criteria in an effort to bolster the competitiveness of the European automotive industry against rising competition from low-cost Chinese electric vehicles, the Financial Times reported Friday.
The three automakers, which account for more than 60% of vehicle production in the EU, submitted a proposal Friday to European lawmakers and policymakers. They are calling for a regulatory framework that explicitly rewards manufacturers that localize production and maintain design and development activities within Europe.
In the joint document, Stellantis, Renault, and Volkswagen stated their goal is to ensure Europe remains a global powerhouse in the automotive industry. They are requesting a mechanism that is simple to apply and monitor, favoring European cars and the domestic industry.
The initiative is part of the ongoing debate regarding the Industrial Accelerator Act, a project introduced by the European Commission to strengthen the industrial competitiveness of the bloc.
Current European proposals suggest that cars destined for corporate fleets and small electric vehicles must be assembled in the EU to qualify for subsidies and public procurement. These proposals also require a 70% share of locally produced components, excluding batteries.
The three automotive groups are instead proposing a simpler system based on a threshold where 70% of vehicles produced in Europe should contain at least 70% components sourced from the 27 EU member states, as well as Iceland, Liechtenstein, and Norway. The remaining 30% could continue to originate from non-European countries.
According to Stellantis, Renault, and Volkswagen, the definition of "Made in EU" should encompass not only final assembly but also engineering, research, and development activities.
The companies are also calling for greater incentives to offset the higher energy and labor costs faced by European manufacturers compared to competitors operating in countries such as Turkey and Morocco.
The three automakers also support extending the so-called "super credits" currently intended for small European-built electric vehicles to all EVs produced within the Union, thereby facilitating the achievement of emission targets.
Particular attention is given to the battery supply chain, which is considered the primary testing ground for the industrial reshoring strategy.
The three automakers believe that localization targets for battery cells must follow a more realistic path. They are requesting that the deadline currently set for 2028 be postponed to 2030, emphasizing that reaching these targets will also depend on public support for European producers such as Verkor and ACC.
However, the proposal faces resistance from several non-European manufacturers, including Toyota, Jaguar Land Rover, and Honda. These companies have expressed concern over the exclusion of components produced in the UK, Japan, and Turkey, as well as the risk that new requirements could further increase vehicle costs for European consumers.
Stellantis shares are up 5.8% at €6.128 per share, Renault is up 5.0% at €28.20, while Volkswagen is in the green by 3.7% at €88.22.
By Antonio Di Giorgio, Alliance News reporter
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