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Stellantis and Renault back UK for EU car industry protection

Stellantis and Renault have supported the inclusion of the UK car industry in proposed EU rules designed to protect European manufacturing.

  • Stellantis and Renault executives stated the UK should be treated as an EU member state for the proposed "Made in Europe" legislation.
  • The executives also urged the British government to consider limiting imports of Chinese cars.
  • The EU confirmed it will limit hybrid electric vehicle imports from China to 350,000 cars annually from December.

Stellantis and Renault have backed the UK car industry for inclusion in proposed EU rules aimed at protecting European manufacturing. Emanuele Cappellano, who leads Stellantis’s European brands, and François Provost, CEO of Renault, stated that the UK should be counted as one of the EU’s 27 member states for the proposed “Made in Europe” legislation.

The new rules are intended to ensure EU subsidies and government procurement benefit European industry. Both executives, speaking at the Paris motor show, also urged the British government to consider limiting imports of Chinese cars.

The EU confirmed on Monday that it would limit the number of hybrid electric vehicles imported from China to 350,000 cars a year. This quota is expected to halve China’s market share of 6% and will come into force in December.

Under the proposed Industrial Accelerator Act (IAA), cars will need to be “made in Europe” and contain sufficient European parts to qualify for EV grants and public body purchases in the EU. Stellantis, which operates a factory in Ellesmere Port, Merseyside, is among manufacturers lobbying for the UK's inclusion.

Provost indicated that a deal between the UK and EU was necessary, but also said the UK would need to stop allowing unlimited Chinese car imports. The UK business secretary, Jonathan Reynolds, stated this month that the decision on imposing tariffs on Chinese imports is under review.

Why this matters: The proposed "Made in Europe" legislation could impact the UK car industry's access to EU subsidies and public procurement benefits, potentially affecting manufacturers with a British presence.

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