Stellantis and Renault urge UK inclusion in EU ‘Made in Europe’ car rules

Senior executives from Stellantis and Renault have called for the UK to be treated as a member of the EU 27 under proposed “Made in Europe” legislation, which aims to reserve subsidies and government procurement for European industry. The remarks were made at the Paris motor show, attended on Monday by French president Emmanuel Macron, and come amid intense lobbying by the UK car industry and government to avoid exclusion from the rules. The proposed Industrial Accelerator Act (IAA) would require cars to be “made in Europe” and contain a sufficient share of European parts and materials to qualify for electric vehicle grants and public procurement. The definition of “European” is still being negotiated, and if Brussels limits it to EU member states, Britain would be left out. Stellantis, which operates a factory in Ellesmere Port producing small vans, has a strong interest in the outcome.

Industry leaders call for UK equalisation

Emanuele Cappellano, who leads Stellantis’s European brands including Fiat, Citroën, Opel and Vauxhall, argued that the UK should be “equalised to the EU 27”. He noted the historical closeness of the UK market to Europe and the company’s footprint there. Renault CEO François Provost said there was “no other choice” but a UK-EU deal, but stressed that the UK would also have to stop allowing Chinese cars in without limits. “On your side, you have also to take decisions,” Provost said, adding that joining the European ecosystem required an industrial ambition to keep a strong automotive industry.

The main European automotive lobby groups, ACEA and Clepa, also back UK inclusion. However, some parts of European manufacturing, including France’s industry minister, have argued that the UK should be left out given Brexit. Cappellano expressed scepticism about extending the rules to Japan, Turkey or Morocco, saying a larger definition of European scope was not necessarily needed. He also called for more time until 2030 for manufacturers to source batteries from within Europe, given China’s dominance in the global battery supply.

Chinese competition and tariffs

Chinese carmakers have increased their market share in Europe as the shift to electric vehicles opens the door to new entrants. The EU confirmed on Monday that it will limit imports of hybrid electric vehicles from China to 350,000 cars per year from December, a quota expected to halve China’s current 6% market share. The quota is part of a four-year agreement made in Beijing last week.

Provost said the industry was “not closed to Chinese competitors” but demanded deep investment in the whole value chain, including manufacturing, suppliers, R&D and technologies. Cappellano urged the UK to consider imposing tariffs on Chinese imports, saying it was difficult to defend an industrial footprint while leaving the market completely open. London has so far rejected pressure to impose its own tariffs, though business secretary Jonathan Reynolds said this month the decision is under review.