Representing more than 60% of European Union car production, Volkswagen, Stellantis NV and the Renault group, on Friday 12 June, shared their “support for Made in EU requirements” contained in the proposal for the Industrial Accelerator Act (IAA), reported the Financial Times (see EUROPE 13821/1).
The three groups want to “ensure that Europe remains the global powerhouse in the automotive industry”, but the IAA must also set “realistic” requirements to ensure that “‘Made in Europe’ is not an additional constraint”.
The draft regulation of 4 March states that, for electric vehicles, Member States may encourage companies to equip themselves with a fleet of electric or hybrid vehicles if 70% of the components (other than batteries) are produced in the EU, as well as at least three battery components (including cells) and 25% of the aluminium used.
After three years, vehicles will have to be assembled in the EU and at least five battery components will have to originate from the EU.
Limited geographical scope. The groups are therefore proposing several amendments: making the benefits of the ‘Made in EU’ label sufficiently substantial to offset the costs of being located in Europe, or relaxing the provision whereby, if 85% of a carmaker’s fleet meets the ‘Made in Europe’ requirements in a given year, 100% of the fleet gets the related benefits the following year.
“We suggest reducing this fleet booster threshold from 85% to 70%. For these 70%, the geographical scope of ‘Made in Europe’ Requirements should be limited exclusively to the EU27 and EEA countries, so as to truly favour the EU’s industrial base. The remaining 30% should ensure that key strategic partners of the European automotive industry can continue to play a vital role”, the three carmakers stress.
The groups also want to remove the criteria relating to low-carbon materials — already included in other documents — and, finally, establish a single definition of ‘Made in Europe’, one that is easy to implement and audit.
The ‘Made in Europe’ super-credits under the revised regulation on CO2 emissions from fleets should also be accessible to all electric vehicles manufactured in Europe, regardless of size, the three manufacturers add.
Link to their position paper: https://aeur.eu/f/mcu (Original version in French Solenn Paulic)