Europe’s top carmakers push EU for 70% local-content rule
Why it matters: Volkswagen, Stellantis and Renault want incentives tied to regional production as EV demand stays weak and imports take 26% of the market.
Volkswagen, Stellantis and Renault are pressing the European Union to adopt a simple “Made in Europe” rule requiring 70% of the value of vehicles sold in the bloc to come from within the EU. In a joint letter to European Parliament members, the automakers also called for stronger incentives for local production, targeted backing for battery manufacturing and more regulatory flexibility, especially for small cars. The groups, which account for about 60% of Europe’s car output, argued the industry faces weak demand, high energy and manufacturing costs, and a technology gap in strategic areas. They said about 3 million fewer vehicles are sold each year in Europe than in 2019, while imports now make up 26% of the EU car market.