Key facts
- Stellantis and Renault want the UK treated as an EU member state for proposed "Made in Europe" legislation.
- The proposed rules aim to ensure EU subsidies and government procurement benefit European industry.
- Chinese carmakers' market share in Europe has increased significantly.
- The EU will limit hybrid electric vehicle imports from China to 350,000 cars annually from December.
- Stellantis has a factory in Ellesmere Port, Merseyside, UK.
- UK business secretary Jonathan Reynolds is reviewing the decision on imposing tariffs on Chinese imports.
Carmakers Stellantis and Renault have voiced support for the UK's inclusion in proposed European Union legislation aimed at protecting the region's automotive industry. The executives believe the UK should be treated as an EU member state for the "Made in Europe" rules, which are intended to ensure that subsidies and government procurement benefits are directed towards European manufacturers.
Speaking at the Paris motor show, where numerous Chinese manufacturers were exhibiting with plans for European expansion, Stellantis's Emanuele Cappellano and Renault's François Provost emphasized the need for the UK to be integrated into this "European ecosystem." They argued that while the industry should not be closed to Chinese competitors, any company operating in Europe must make significant investments across the entire value chain, including manufacturing, suppliers, and research and development.
This push comes as the EU car industry faces pressure from lower demand and substantial investment in electric vehicle (EV) production, while Chinese automakers gain market share. The EU has already confirmed a quota limiting annual hybrid electric vehicle imports from China to 350,000 cars, a move expected to halve China's current 6% market share. The proposed Industrial Accelerator Act (IAA) would require cars to be "made in Europe" with sufficient European parts and materials to qualify for EV grants and public procurement.
Provost specifically stated that if the UK wishes to join this ecosystem, it must also make decisions regarding its own import levels from China. Cappellano echoed this sentiment, suggesting that it is difficult to defend domestic industrial footprints while maintaining completely open borders to imports, and that the UK needs to define its priorities. He also expressed skepticism about including countries beyond the EU, such as Japan, Turkey, and Morocco, in the "European scope" of the rules and advocated for more time, until 2030, for manufacturers to source batteries from within Europe, given China's dominance in battery supply.
London has so far resisted pressure to impose tariffs on Chinese imports, but UK Business Secretary Jonathan Reynolds indicated this month that the decision is under review. The European automotive lobby groups ACEA and Clepa have also supported the UK's inclusion, though some European manufacturing sectors and politicians had initially argued against it due to Brexit.