Toyota and Jaguar Land Rover have warned that “Made in Europe” manufacturing targets threaten investment and jobs, making cars produced in Europe even more expensive than Chinese vehicles.
Under current EU proposals, cars for corporate fleets and small electric vehicles would have to be assembled within the bloc to be eligible for public procurement and subsidies. That has sparked an outcry from global carmakers that export their vehicles to Europe from countries such as the UK, Turkey and Morocco.
Under the so-called Industrial Accelerator Act, the EU is also proposing a 70 per cent local content threshold for car components, excluding batteries, if they are to qualify for subsidies or public contracts.