Volkswagen, Stellantis and Renault urge EU to mandate 70% local content for cars

In Brussels, the three largest European automakers—Volkswagen, Stellantis and Renault—sent an open letter to members of the European Parliament calling for an EU rule that at least 70 % of the economic value of any vehicle sold in the bloc be produced inside Europe. The proposal would cover design, component manufacturing, battery production and final assembly, and the companies ask for strong financial incentives to keep production on the continent.

They argue the measure is needed to counter growing competition from China and the United States, rising energy and compliance costs, and a slowdown in European car sales, which are about three million units below pre‑pandemic levels. The letter also requests support for domestic battery factories and more flexible type‑approval rules for small electric cars.

Renault’s chief executive, François Provost, said at the Automotive News Europe Congress that Renault has no excess staff or overcapacity and will not cede assembly lines to Chinese firms. He noted a surge in demand for electric vehicles—up 29 % in the first four months of the year—driven partly by higher fuel prices linked to the Iran conflict, and he highlighted efforts to expand battery supply, including possible LFP production at Renault’s French plant.