EU's 'Made in Europe' push unnerves global auto suppliers
In shielding Europe's carmakers from Chinese rivals, the EU risks hurting close partners from Turkey and Morocco to Japan and South Korea. Billions in trade and hundreds of thousands of European jobs are at stake.
The EU's "Made in Europe" initiative, aimed at bolstering Europe's auto industry amid China's trade practices, has sparked concern among global auto suppliers. Though intended to upgrade factories and only subsidize European-produced vehicles, the proposal could negatively impact non-EU nations like Turkey, Japan, South Korea, and the United Kingdom.
The plan requires 70% of vehicle components, excluding batteries, to be made in Europe, yet the scope of affected vehicles remains limited. Critics argue that excluding Turkey, which exports 73% of its automotive exports to the EU, would harm both Turkish and European economies. Meanwhile, auto-parts suppliers advocate for strengthening the IAA to protect their members from Chinese competition, who may exploit Turkey and Morocco's presence in the EU market.
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