The European Union (EU), according to sources from the European Commission (EC), is preparing to introduce a rule that imposes the incorporation of a minimum percentage (70%) of components manufactured in Europe in the production of new cars in order to qualify for purchase incentives. According to a report from the Financial Times, the legislative action aims to protect the European automotive industry from increasing and more “aggressive” Chinese competition, while simultaneously providing legal tools to ensure financial resources to become less dependent on third parties. The measures under consideration in Brussels are also intended to promote electric mobility, with the introduction of incentives for the purchase of 100% electric models.
This minimum percentage of integration of components manufactured in Europe, according to the aforementioned report, excludes batteries, but not all parts used in electric motors. The two largest European manufacturers, the VW Group and Stellantis, have recently expressed support for the introduction of measures to protect the industry and market in the Old Continent.
The top executives of the two conglomerates, Oliver Blume (VW Group) and Antonio Filosa (Stellantis), wrote a joint open letter, which they sent to Brussels, asking EU politicians to prioritize production in Europe during the definition of environmental regulations in the region. And, as mentioned in the same report, they proposed another type of purchase incentive, believing that “electric cars manufactured on the continent should benefit from bonuses in the area of CO2 emissions”.
However, this topic is not consensual among European manufacturers, especially those that produce cars in other regions of the world, such as China and the USA. This is evidenced by the position of the BMW Group, for example: the German manufacturer warns of the risks that these measures could lead to costly and unnecessary bureaucratic processes. Other manufacturers are calling for increased flexibility, with the extension of protection beyond the borders of the EU, which would allow for the inclusion of factories located in countries such as the United Kingdom, Turkey, or… Japan!
