EU automotive 'Made in Europe' plan faces industry pushback

The European Commission's Industrial Accelerator Act proposes a “Made in Europe” rule that would require vehicles destined for corporate fleets and small electric cars to be assembled within the EU and to contain at least 70% locally sourced components (excluding batteries) to qualify for public subsidies and contracts. Toyota and Jaguar Land Rover warned that the proposal could raise production costs, threaten investment and jobs, and asked that vehicles built in Japan, the United Kingdom and Turkey be eligible for the incentives. Stellantis, Volkswagen and Renault lodged a joint “70:70” pledge with the European Parliament, urging clear rules, strong incentives and a practical 70% regional content threshold to boost EU manufacturing and help the bloc raise the manufacturing share of its economy from 14.3% to 20% by 2035. The three manufacturers, which together account for about 60% of European car output, stress the need for a realistic framework that supports competitiveness, attracts investment and fosters reshoring, while European supplier groups back the 70% rule but oppose diluting it. Disagreements persist over the geographic scope, with France and Germany pressing for adjustments that would include the UK, and concerns that excluding key partners could undermine supply chains on both sides of the Channel.