The EU's proposed rules on local "Made in Europe" content could undermine the low-cost car production strategies that Renault, Stellantis, Toyota, Ford and other automakers have built in Morocco and Turkey, according to Automotive News.
The draft, which is part of the Industrial Acceleration Act, will limit incentives for electric vehicles and government support to only those vehicles that are assembled in the EU and for which at least 70% of the cost is accounted for by components of European origin. This creates tension between the EU's goal of protecting jobs and reducing dependence on China and the need for automakers to competitively produce small cars outside the bloc. Morocco and Turkey are in a particularly vulnerable position: Renault and Stellantis produced more than 500,000 vehicles in Morocco in 2025, and after the expansion of the Stellantis plant in Kenitra, the capacity will approach 1 million; at the same time, Turkey exported about 750,000 vehicles to the EU last year. Key models include Dacia Sandero, Peugeot 208 and Dacia Jogger.
current automotive news in our Telegram channelRenault, Stellantis and Volkswagen have proposed a more lenient approach, according to which 70% of the manufacturer's fleet sold in the EU must contain 70% of European components in order for the entire fleet to meet the requirements. The debate also raises the question of whether countries with close trade ties such as Morocco, Turkey, the United Kingdom, Japan, and South Korea should be considered European. The EU's final approval is unlikely to happen before the end of 2027.