A European automaker representative body has joined calls for the U.K. and other regions where its members build vehicles to be included in the European Union’s trade framework.
The “Made in EU” strategy, part of the economic bloc’s Industrial Accelerator Act, has been welcomed by the European Automobile Manufacturers’ Association.
However, it now calls for several key changes that will help its automakers support, rather than hinder, its electrification transition, ACEA explained in its July 1 release.
High on the ACEA’s list of requests is ensuring that “Made in EU” financial benefits for automakers are substantial enough to compensate for the extra costs associated with localizing vehicle production in Europe.
It calls for the setting of the strategy’s geographic scope to include the 27 members of the EU plus the U.K. while also protecting existing automaker investments in selected countries, such as Turkey and Morocco, in a targeted way.
This move follows Toyota Motor Europe’s boss Yoshihiro Nakata saying its manufacturing partners in the U.K., Japan and Turkey should be recognized as “Made in EU.”
Leaner and fairer rules of calculating “local content” recognize the value added by vehicle manufacturers in production and the important economic role of vehicles manufactured in Europe for exports, the ACEA said.
Other areas of areas of concern include the need for regulators to set realistic targets for electric vehicle batteries in line with the real-world ramp-up of battery production, plus tailoring the proposal to the specific needs of various automotive segments.
“The risk of hollowing out the EU industrial base is real, and smart, targeted measures to support homegrown manufacturing are justified,” Sigrid de Vries, ACEA director general, said in a statement. “But the scale of the challenge facing our sector must not be underestimated.”
She listed the challenges facing EU automakers including a shrinking EU market, fierce competition, geopolitical instability, rising manufacturing costs and increasing regulatory requirements, while having to invest billions of euros into electrification to meet ambitious 2030 targets.
“With a number of important tweaks, the Industrial Accelerator Act can become a catalyst for industrial strength,” de Vries said. “Importantly, the Act must also be firmly embedded in a comprehensive industrial policy.”
