European carmakers urge EU to protect investments in Türkiye and Morocco

European carmakers urge EU to protect investments in Türkiye and Morocco
Employees work at the assembly line of Dacia Sandero cars at a factory operated by Somaca in Tangiers, Morocco, 21 February 2013.
Reuters

European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.

The appeal comes as the EU prepares its proposed Industrial Accelerator Act, which aims to strengthen Europe's industrial base and reduce reliance on third countries for key industries.

In a position paper, the European Automobile Manufacturers’ Association (ACEA) said it supports the overall goal of boosting European manufacturing. However, it warned that the current proposal could unintentionally disrupt long-established supply chains and weaken investments made under existing EU rules.

ACEA said giving preference to production within the EU’s 27 member states is a reasonable objective, but argued that the changes should be introduced gradually.

It also called for targeted exemptions to protect investments already made in neighbouring countries that are closely linked to Europe’s automotive industry.

“The Industrial Accelerator Act’s full policy toolkit should take into account ACEA members’ existing operations in the EU’s closely integrated neighbourhood of Türkiye and Morocco,” the association said. It added that companies which invested in good faith should not see those investments lose their value.

Carmakers seek broader definition of European value

The group also urged the EU to measure European content at the level of the finished vehicle rather than individual parts. It said this would better reflect the value created through research and development, engineering expertise and skilled workers.

ACEA also called for the United Kingdom to be treated as an equal partner under the “Made in EU” framework, pointing to the close links between British and European automotive supply chains.

Call for practical implementation

The association said the new rules should be supported by practical incentives, realistic deadlines for localising production and simpler reporting requirements.

Without those measures, it warned, manufacturers could face higher costs without making Europe a more attractive place to build vehicles.

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