Europe's proposed "Made in Europe" rules for the automotive industry split the industry between global manufacturers warning of higher costs and European groups seeking stronger protection from Chinese competition, the Financial Times reports.
Toyota and Jaguar Land Rover argue that the EU's industrial acceleration law, which will limit subsidies and government purchases of vehicles assembled in the bloc and require 70% local component content, risks undermining investment, jobs and supply chains in partner countries such as Britain, Turkey and Morocco. JLR says these regulations will increase compliance costs and make European cars even more expensive, while Toyota warns that excluding international partners could weaken regional scale, employment and technology transfer. Nissan has also warned that this policy could threaten its factory in Sunderland.
Instead, Renault joined Volkswagen and Stellantis in supporting stricter "EU-made" targets, arguing that Europe needs a simple mechanism to encourage local production, engineering, and research and development. These three groups, representing more than 60% of EU car production, want 70% of EU cars to contain 70% of local content from the EU, as well as Iceland, Liechtenstein and Norway, which will provide broader benefits for all electric vehicles produced in this group of countries. Batteries remain the biggest problem, and companies are calling for a more realistic localization schedule, postponed to 2030.
