Quick Takeaways
- European automotive manufacturing faces urgent competitiveness risks as CLEPA pushes for stronger EU policy action.
- Suppliers demand a 75% European component threshold and immediate local content safeguards.
On February 10, the European Association of Automotive Suppliers (CLEPA) called for urgent policy action to safeguard European automotive manufacturing ahead of the informal EU Leaders’ Retreat scheduled for February 12, 2026. The association stressed that the proposed EU Industrial Accelerator Act must be strengthened with clear and enforceable criteria, particularly around the definition of ‘European-made’ vehicles and components. According to CLEPA, a vehicle should qualify as European if at least 75% of its components originate within Europe.
European automotive manufacturing is facing mounting structural pressures, including elevated electricity costs and fragmented regulatory frameworks across member states. CLEPA warned that without immediate intervention, Europe risks losing critical industrial capacity to regions offering lower labour costs and less stringent compliance standards.
A central demand from automotive suppliers in Europe is the introduction of a measurable and transparent threshold for local production. CLEPA argues that defining a European vehicle as one containing at least 75% European components would provide clarity for manufacturers, investors, and policymakers. Such a benchmark would also align industrial policy with broader EU competitiveness objectives while strengthening supply chain resilience within the bloc.
While long-term reforms are essential, CLEPA emphasized that structural measures will require time to deliver tangible benefits. In the interim, targeted local content policy instruments are necessary to prevent further erosion of manufacturing capabilities.
To reinforce European automotive manufacturing, CLEPA outlined three priority areas:
According to the association, these measures are critical to ensuring that industrial capacity remains anchored in Europe during a period of global economic transition. Without swift action, weakened value chains could result in underutilised factories and increased dependency on external suppliers.
As discussions progress at the EU level, the future trajectory of European automotive manufacturing will depend on how decisively policymakers respond to supplier concerns. Strengthened industrial safeguards, combined with structural competitiveness reforms, could determine whether Europe retains its position as a global automotive production hub or faces long-term strategic vulnerabilities.
European Automotive Manufacturing at a Crossroads
European automotive manufacturing is facing mounting structural pressures, including elevated electricity costs and fragmented regulatory frameworks across member states. CLEPA warned that without immediate intervention, Europe risks losing critical industrial capacity to regions offering lower labour costs and less stringent compliance standards.
Need for a Clear ‘European-Made’ Definition
A central demand from automotive suppliers in Europe is the introduction of a measurable and transparent threshold for local production. CLEPA argues that defining a European vehicle as one containing at least 75% European components would provide clarity for manufacturers, investors, and policymakers. Such a benchmark would also align industrial policy with broader EU competitiveness objectives while strengthening supply chain resilience within the bloc.
Immediate Safeguards Before Structural Reforms Take Effect
While long-term reforms are essential, CLEPA emphasized that structural measures will require time to deliver tangible benefits. In the interim, targeted local content policy instruments are necessary to prevent further erosion of manufacturing capabilities.
Lowering Costs and Strengthening the Single Market
To reinforce European automotive manufacturing, CLEPA outlined three priority areas:
- Reducing electricity costs to restore cost competitiveness.
- Cutting administrative burdens and regulatory red tape.
- Advancing deeper Single Market integration to remove fragmentation.
According to the association, these measures are critical to ensuring that industrial capacity remains anchored in Europe during a period of global economic transition. Without swift action, weakened value chains could result in underutilised factories and increased dependency on external suppliers.
As discussions progress at the EU level, the future trajectory of European automotive manufacturing will depend on how decisively policymakers respond to supplier concerns. Strengthened industrial safeguards, combined with structural competitiveness reforms, could determine whether Europe retains its position as a global automotive production hub or faces long-term strategic vulnerabilities.
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