Volkswagen, Stellantis and Renault urge the EU to set a ‘Made in Europe’ automotive standard, boosting local production and cutting reliance on imports. Discover the details and join the push.
Three of Europe’s biggest car manufacturers – Volkswagen, Stellantis and Renault – have sent a joint letter to the European Parliament urging the EU to introduce a simple “Made in Europe” rule for automobiles.
What the proposal entails
The consortium, which accounts for roughly 60 % of the continent’s vehicle output, asks that at least 70 % of the value of parts, technology and manufacturing processes in cars sold in the EU come from the 27 member states.
The measure would cover the entire automotive value chain, from research and engineering to final assembly, ensuring that more economic value stays within Europe.
Why now?
The call comes as the industry undergoes a massive shift toward electrification, and European sales have slipped by about three million units per year compared with 2019. The manufacturers argue that without stronger policy support, the sector risks losing competitiveness to overseas rivals, especially Chinese EV makers.
Potential policy tools
- Setting a clear localisation quota for components and technology.
- Providing targeted financial incentives for battery production and other critical EV supply‑chain segments.
- Relaxing certain regulations for small‑car categories to lower legal burdens.
Industry perspective
In their letter, the three groups warned that Europe faces “unprecedented competitiveness challenges” due to a widening technology gap, high energy costs and stringent compliance requirements. They stressed that a realistic legal framework is essential for preserving a strong manufacturing base in Europe.
Broader implications
Currently, about 26 % of vehicles on EU roads are imported. The automakers view a “Made in Europe” standard as a way to curb the outflow of production to non‑EU countries while keeping the market open.
With Chinese manufacturers gaining ground thanks to lower production costs and a head‑start in electric‑vehicle technology, traditional European firms see the proposal as a safeguard for domestic jobs and innovation.
As the EU evaluates the broader “Made in Europe” industrial strategy, the automotive sector’s push could shape future trade and investment rules across the continent.
Read more about the initiative and how you can support a stronger European car industry.