EU car industry clashes over strategy to fight Chinese competitors
European car suppliers and manufacturers are divided over Brussels' "Made in Europe" strategy to protect the EU market from Chinese competition.
The European Union's automotive sector is experiencing deep divisions over the "Made in Europe" strategy proposed by Brussels to shield the EU market from Chinese competition. This initiative is part of the upcoming Industrial Accelerator Act, which aims to favour electric vehicles composed mainly of European components in public procurement and support schemes.
Currently, the proposed law, which sets a 70% local content threshold for electric vehicles, is being debated by EU member states and the European Parliament. The European Association of Automotive Suppliers (CLEPA) considers the Commission's proposal a step in the right direction. According to a study by Roland Berger commissioned by CLEPA, plug-in hybrid and battery-electric vehicles manufactured in Europe already contain between 80% and 90% European-made components, making the 70% threshold achievable.
In contrast, the European Automobile Manufacturers' Association (ACEA) is advocating for a different methodology that would assess finished vehicles rather than the local content of components. ACEA argues that a vehicle's value extends beyond its parts, including R&D, advanced engineering, and a highly skilled workforce. CLEPA responded that under this approach, a finished vehicle would only require 50% EU-made parts, with the remaining 20% coming from R&D and design. This dilution could lead to the loss of 350,000 jobs, warns CLEPA, emphasising that the Commission's component-level approach would safeguard the existing manufacturing base.
CLEPA Secretary General Benjamin Krieger told Euronews that the industry faces significant competition from best-cost countries, with China being the biggest threat. He stated: "A 'Made in Europe' threshold that ignores where the actual parts are built is a label that ignores the European worker."
