EU industrialists are joining forces to support the Made in Europe policy – analyst

EU industrial sectors, which were initially sceptical of the ‘Made in Europe’ policy, are increasingly backing it. This trend was noted by Tristan Bückler, an industry analyst at Strategic Perspectives.

Indeed, at the end of last week, the bloc’s largest car manufacturers – Renault, Volkswagen and Stellantis, which account for over 60 per cent of car production in the EU – issued a joint letter to politicians, calling for a clear policy to stimulate local component supply, development and assembly.

In particular, the companies called for the creation of a system that would require 70 per cent of cars in the EU to contain 70 per cent local components manufactured in the EU-27 and the EEA, leaving 30 per cent open to other partners.

The carmakers’ position is also accompanied by a number of proposals, including additional flexible mechanisms within the framework of the regulation on carbon emission standards, and so on. An analyst notes that this marks a return to a more typical stance – lobbying for short-term flexibility at the expense of long-term competitiveness.

Volkswagen, Stellantis and Renault have stated that they remain committed to supporting a strong manufacturing base in Europe, but that this depends on a more realistic regulatory framework.

The companies noted that demand in Europe remains weak: around 3 million fewer cars are being sold annually than in 2019, which underlines the need for political support.

Bukler notes that many other companies, including Bosch, are joining these firms in calling for an industrial policy capable of restoring competitiveness and levelling the playing field. Thus, certain changes are taking place in the EU’s industrial sector.

It is worth recalling that in April, the British automotive industry group SMMT called for clarification on whether the UK would be subject to the ‘Made in Europe’ rule under the Industrial Accelerator Act (IAA) policy.