- CLEPA urges the EU to include a 75% local content threshold in the Industrial Accelerator Act to protect European automotive suppliers.
- The association warns that unfair competition and state-backed overcapacity threaten Europe?s technological sovereignty and jobs.
On February 18, the European Association of Automotive Suppliers issued an open letter to the President and EU Commissioners ahead of the expected publication of the Industrial Accelerator Act. The association called for decisive measures to safeguard European automotive suppliers from intensifying unfair competition. According to CLEPA, distortive subsidies, state-backed overcapacity, and unilateral tariffs are creating structural disadvantages that undermine the competitiveness of the region?s industrial base.
Call for Stronger Industrial Safeguards
The letter emphasizes that the Industrial Accelerator Act must serve as a strategic instrument to reinforce Europe?s manufacturing ecosystem. CLEPA argues that without firm action, European automotive suppliers will continue to face mounting pressure from external market distortions that erode investment capacity and technological leadership.
To prevent long-term decline, the association stresses that policy intervention is essential to counter unfair competition and rebalance global trade dynamics affecting the automotive sector.
Proposed 75% Local Content Threshold
A central recommendation is the introduction of a 75% local content threshold at the vehicle level for projects receiving public support, excluding batteries. This provision under the Industrial Accelerator Act would ensure that public funding strengthens domestic value creation rather than supporting external supply chains.
Targeted Measures for Critical Technologies
In addition to the vehicle-level requirement, CLEPA proposes targeted and gradual thresholds for strategic technologies such as electric powertrains and electrical and electronic components. These measures aim to protect critical segments where global overcapacity and subsidized competition are most acute.
Protecting Technological Sovereignty
CLEPA warns that failure to embed robust safeguards in the Industrial Accelerator Act could lead the European Union toward lasting dependency on regions characterized by lower production costs and weaker regulatory frameworks. Such dependency would weaken Europe?s technological sovereignty and reduce its influence in future mobility innovation.
The association underlines that strengthening local value chains is vital to sustaining high-quality employment and maintaining advanced engineering capabilities across European automotive suppliers.
Balancing Competitiveness and Resilience
By integrating a 75% local content threshold and structured requirements for key technologies, the Industrial Accelerator Act can reinforce industrial resilience while preserving open and competitive markets. CLEPA maintains that a calibrated policy approach is necessary to ensure fair competition without fragmenting international trade.
The open letter positions the Industrial Accelerator Act as a decisive opportunity for policymakers to secure long-term competitiveness, protect skilled jobs, and reinforce Europe?s role as a leader in advanced automotive manufacturing.
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