Made in Europe: Renault, VW and Stellantis push the EU to back local carmakers
A. Krivonosov
Renault, Volkswagen and Stellantis are urging Brussels to favour cars assembled and sourced inside the EU, backing a 70% local-content rule against pressure from cheap Chinese EVs.
Europe’s carmakers are looking for ways to shield themselves from the pressure of Chinese electric vehicles. Renault, Volkswagen and Stellantis have urged EU authorities to make the Made in Europe rules simple and clear: public support should go to manufacturers that keep assembly, engineering and a significant share of components inside Europe.
According to Reuters, the three groups together account for more than 60% of vehicle production in the European Union. Their logic is straightforward: if state subsidies, corporate procurement and incentives keep flowing to cars built outside Europe, local plants will be left in a weak position. Especially against the backdrop of Chinese brands, which roll out affordable EVs faster and have a tighter grip on the battery, electronics and software supply chains.
One option on the table is a rule under which around 70% of a car’s components would have to come from Europe, with up to 30% sourced from outside. Carmakers see this approach as more realistic than full-blown localisation overnight. Closing supply chains entirely inside Europe is hard right now: batteries, raw materials, electronics and certain components are still heavily tied to Asia.
The idea has its opponents too. Companies with global supply chains worry about higher costs and new layers of red tape. For Toyota, Honda, Jaguar Land Rover and others, the issue is especially sensitive: part of their European sales is linked to plants and suppliers outside the EU, including the UK, Turkey and Morocco.
The bigger picture is a signal for the entire market. Europe is trying to preserve its industrial base and jobs, but at the same time risks making its own cars more expensive. If localisation gets stricter, European EVs and hybrids could fall even further behind Chinese models on price. Which means the gap between legacy brands and Chinese rivals in the mass segment may only widen.
Made in Europe is not just a sticker on a car. It’s Europe’s attempt to hold on to its factories, technologies and jobs at a moment when China is already playing faster and cheaper.
