ACEA Calls for Practical Industrial Accelerator Act to Protect EU Automotive Manufacturing

The European Union is moving forward with the Industrial Accelerator Act to reinforce domestic manufacturing capabilities and reduce dependence on external regions for clean technologies. While the European Automobile Manufacturers' Association (ACEA) supports these strategic objectives, it believes the current proposal requires significant refinements to avoid unintended consequences for Europe's automotive sector. According to the industry body, successful implementation must strengthen manufacturing without disrupting established supply chains, reducing competitiveness, or putting existing investments and employment at risk.

ACEA has urged EU co-legislators to introduce financial incentives that make localisation requirements commercially viable. Since manufacturing within Europe can increase production costs, the association recommends measures such as carbon dioxide super-credits for electric vehicles and vans, alongside financial incentives for public procurement of EU-produced trucks and buses. These measures would encourage local production while maintaining the industry's ability to compete globally and support the transition toward cleaner mobility.

The association also recommends that the "Made in the EU" calculation should account for the complete value of a finished vehicle rather than focusing only on individual components. Such an approach would better recognise the contribution of European engineering, research and development, manufacturing expertise, and skilled labour. ACEA notes that this methodology is already used within existing EU trade agreements and would more accurately reflect the value created throughout the automotive production process.

ACEA further argues that the United Kingdom should continue to be treated as an equal partner because automotive supply chains remain deeply interconnected across both markets. Vehicles, batteries, and components manufactured in the UK should therefore receive the same "Made in the EU" recognition and associated policy advantages as products manufactured within EU member states. Maintaining this approach would preserve long-established industrial cooperation and minimise unnecessary supply chain disruption.

Another major recommendation focuses on protecting investments already made by European automakers in Turkey and Morocco. ACEA believes existing manufacturing facilities in these countries should remain eligible under the revised framework through appropriate safeguard mechanisms that prevent misuse while protecting legitimate long-term industrial investments. The association also proposes a simplified fleet-level compliance mechanism whereby if 70% of an automaker's annual vehicle production satisfies the "Made in Europe" requirements, the entire fleet would qualify for related incentives during the following year.

ACEA also recommends more realistic implementation timelines for battery localisation requirements while postponing low-carbon material obligations until clear regulatory definitions are established. The proposed localisation requirements covering EU-produced e-powertrains and electronic components should undergo additional evaluation to ensure they remain practical, particularly during periods of supply chain disruption. Furthermore, reporting obligations should be simplified because manufacturers would otherwise need to gather compliance information from thousands of suppliers, creating unnecessary administrative burdens and increasing audit complexity.

Vehicle-specific flexibility is another important element highlighted by ACEA. Passenger cars, vans, trucks, and buses operate through different supply chains and manufacturing ecosystems, making a uniform regulatory approach unsuitable. Heavy-duty vehicle manufacturers, in particular, continue to face limited availability of EU-produced batteries, making strict localisation targets difficult to achieve. Requiring locally produced battery components under current market conditions could substantially increase production costs, with available subsidies unlikely to fully offset the additional financial burden.

ACEA concludes that the Industrial Accelerator Act alone cannot restore Europe's long-term manufacturing competitiveness. Alongside the new framework, policymakers should address structural challenges including high energy prices, lengthy permitting procedures, persistent skills shortages, and continued investment in battery manufacturing capacity. The association also stresses that broader regulatory simplification remains essential to create a competitive, resilient, and sustainable European automotive industry capable of supporting future industrial growth.

Frequently Asked Questions

What changes does ACEA want in the Industrial Accelerator Act?
ACEA wants the Industrial Accelerator Act to include practical implementation measures that strengthen European manufacturing while protecting existing automotive investments and supply chains. The association recommends production incentives, broader "Made in the EU" calculations, equal treatment for UK-made products, protection for investments in Turkey and Morocco, simplified reporting, realistic localisation timelines, and vehicle-segment-specific rules. It also urges policymakers to address wider industrial challenges such as energy costs, permitting delays, workforce shortages, and battery production capacity.