Automakers reject Brussels' "made in Europe" proposal
European automakers refused to support the initiative of the EU Commissioner for Industry, Stephane Sejournay, to promote the "made in Europe" rules, which exposed sharp disagreements on how to counteract the influx of cheap Chinese cars, the Financial Times reports. Sejournay called on business leaders to support the initiative, which provides for government subsidies in favor of products with a high level of European content, arguing that EU public funds should directly support European production.
Although more than 1,000 executives and industry groups, including Clepa, Thyssenkrupp, and Michelin, have signed on to the initiative, automakers have largely stayed away, citing uncertainty about how the concept of "European" content will be defined and applied. The proposed Industrial Accelerator Act, which has been repeatedly postponed and is now expected at the end of February, will set minimum thresholds for local content — reportedly up to 70% for cars — in order to reduce dependence on China and protect EU industry.
Automakers, whose production networks are highly globalized, fear that strict regulations could damage competitiveness, especially given higher energy and labor costs in Europe. Groups such as Renault, Stellantis and Volkswagen support the principle of rewarding local production but want flexibility, while BMW's Oliver Chips warned that complex content regulations could undermine innovation. There is also debate about whether the concept of "made in Europe" should be extended to partners such as the United Kingdom, Turkey or Japan, highlighting long-standing tensions between France's protectionist instincts and the more open market position of Germany and the Nordic countries.