Stellantis and Renault back UK to get EU car industry protection

Stellantis and Renault, both French carmakers, have supported the UK's inclusion in proposed EU rules aimed at protecting its car industry from foreign competition. Emanuele Cappellano, head of Stellantis's European brands, and François Provost, Renault's chief executive, argued that the UK should be treated as one of the EU's 27 member states for the purposes of the "Made in Europe" legislation.

The new rules, set to be enforced in December, will limit the number of hybrid electric vehicles imported from China to 350,000 per year, with the aim of halving China's market share in this sector. Cappellano and Provost urged the UK government to consider limiting imports of Chinese cars, as the UK car industry currently lacks access to EU subsidies and government procurement benefits.

The "Made in Europe" rules are part of the EU's broader strategy to counteract China's growing influence in key industries such as car manufacturing and chemicals. The proposed Industrial Accelerator Act (IAA) requires cars to be "made in Europe" and contain a significant amount of European parts and materials to qualify for grants and receive public procurement preferences.

However, discussions are ongoing over the specifics of the rules, with automotive manufacturers and politicians debating the definition of "European" and the level of imports allowed. UK car manufacturer Stellantis still operates a production facility in Ellesmere Port, Merseyside, which manufactures small vans. Cappellano emphasized that the UK should be treated equally to the EU's 27 member states, given its historical close relationship with the European market.