Made in Europe Electric Vehicles Strategy Backed by Volkswagen and Stellantis CEOs

On February 5, the CEOs of Volkswagen Group and Stellantis jointly issued an open letter outlining measures to reinforce the European automotive sector, aligning closely with the European Union’s Made in Europe industrial strategy proposed by the EU Commissioner for Industry. The initiative emphasizes competitiveness, resilience, and fair market conditions for manufacturers operating within Europe.
The European car industry contributes roughly 8% to the region’s annual GDP and supports around 13 million jobs across the value chain. Volkswagen and Stellantis highlighted that nine out of every ten vehicles they sell in the EU are produced within Europe, underscoring their commitment to local manufacturing despite rising competitive pressures.

Addressing Competitive and Structural Challenges

European automakers are increasingly challenged by imports produced under regulatory and social frameworks that differ significantly from EU standards. These conditions, combined with rising cost pressures and external dependencies, pose long-term risks to the sustainability of European vehicle production.

Principles Behind the Made in Europe Strategy

The Made in Europe electric vehicles approach is built on two core principles aimed at restoring balance and resilience:

• Companies selling vehicles in Europe should also manufacture them under comparable regulatory and social conditions

• European public funding should be used selectively to encourage domestic production and attract long-term investment into the EU

Defining Made in Europe Electric Vehicles

For electric vehicles, Made in Europe status would be determined by four critical areas essential to industrial independence and innovation:

• Vehicle production and automotive R&D activities

• Electric powertrain development and manufacturing

• Battery cell production within Europe

• Manufacturing of key electronic components

Vehicles that meet these criteria would receive a dedicated Made in Europe label and become eligible for targeted benefits. According to the proposal, qualifying models should also receive a CO₂ bonus. Furthermore, if a manufacturer meets the Made in Europe requirements across a significant share of its fleet, the CO₂ benefit should extend to all its electric vehicles.
The CEOs argue that such measures would strengthen Europe’s automotive ecosystem, reduce strategic dependencies, and ensure that public incentives directly support local production, innovation, and employment while accelerating the transition toward competitive electric mobility in Europe.