Volkswagen, Stellantis, and Renault Join Forces to Push EU 'Made in Europe' Auto Rules
Claire Weston
Volkswagen, Stellantis and Renault on Friday jointly submitted a proposal urging the EU to embed local-content incentives into its auto-industry framework, aiming to counter the competitive pressure from cheaper Chinese vehicles. The three automakers account for 60% of EU car production — the first time Europe's mass-market giants have united on this policy front.
What exactly are the three automakers asking for?
They want the EU's forthcoming Industrial Acceleration Act to include a "Made in Europe" rule: at least 70% of work and parts value in 70% of EU-built vehicles must originate in the EU, Norway, Iceland or Liechtenstein.
They also propose counting R&D spending and final assembly toward local content — not just components.
This means → they are not asking for a simple tariff wall but a scoring system that rewards how much a carmaker actually spends building cars in Europe.
What are "super-credits," and why do they matter?
Super-credits are an EU incentive concept: small EVs manufactured locally can count extra toward a carmaker's fleet CO₂ compliance target.
In plain terms = the EU sets a carbon-emissions ceiling each year; exceed it and you pay fines. Super-credits act as bonus points — the more EVs you build in Europe, the further you stay from the penalty line.
The three automakers want super-credits expanded from small EVs to all EVs built inside the EU, so larger models get the same policy benefit.
Why are they joining forces now?
Europe's automakers are at the most unstable point of the EV transition: demand for electric cars is soft, and many factories run well below optimal capacity.
At the same time, Chinese brands like BYD and MG (SAIC) are gaining European market share with lower-priced models. The battery-power shift has opened a competitive window.
This reflects a deeper pressure: fierce price wars at home are pushing Chinese carmakers to find export markets faster, launching new models at a pace European rivals struggle to match.
Who could this rule shut out?
The controversy is already visible: Toyota, Nissan and Jaguar Land Rover worry that parts made in the UK, Japan and Turkey would fall outside the local-content boundary.
This means → if the rule takes effect, it would not only hit Chinese automakers — any company with major production outside the EU could be disadvantaged.
The legislation is still in process. The European Commission published a draft bill in March; the final boundaries remain undefined.
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