ArGeZ, the German Automobile Suppliers Association, supported the European Commission's proposed Industrial Acceleration Act (IAA), saying the initiative could strengthen Europe's industrial base, expand production capacity, and accelerate decarbonization in all strategic sectors.
According to the association, geopolitical uncertainty, growing dependence on supply chains, and large-scale industrial policy programs in the United States and China have increased the need for a more strategically aligned European industrial policy. ArGeZ stated that European preference rules are justified, especially in cases involving public financing, provided that measures remain appropriate and proportionate.
Imports of automotive components from China have doubled since 2019
This, according to the association, increased the competitive pressure on European suppliers of automotive components. ArGeZ noted that imports of automotive components from China to the EU have doubled since 2019, while exports from the EU have shown only limited growth. Against this background, the association considers the European system of preferences necessary to maintain the competitiveness of manufacturers operating in the EU and create industrial added value.According to the proposed IAA, government procurement and financial support will increasingly focus on products made in Europe with lower carbon dioxide emissions.
,"Made in Europe" rules can support strategic industries. ,
,According to ArGeZ, the "Made in Europe" approach can strengthen European value chains and employment, while supporting the transition to a climate-neutral economy and helping to preserve technological competencies in the EU. The Association named steel, aluminum, rubber, automotive, and future technologies as strategic industries that could benefit from the proposed procurement criteria.
She stressed that the requirements for local content should apply not only to finished products, but also to their components in order to maintain a large share of industrial value added in Europe. Having supported the European rules of preferences, ArGeZ warned that their implementation should not create an excessive administrative burden for manufacturers. The association called for realistic and feasible requirements for local content and stated that digital supply chains can simplify compliance and documentation, especially in complex industries such as automotive.Content from third countries should not automatically qualify as an EU source. ,
,The question of how origin should be determined is also being considered.
