Volkswagen, Renault and Stellantis ask Brussels to clarify what counts as 'made in Europe'

Volkswagen, Renault and Stellantis are pressing Brussels to set a clearer definition of what counts as "made in Europe" for cars, in a coordinated push that could shape subsidies, public procurement and future industrial policy across the bloc.

The three carmakers want the European Commission to adopt a simple framework that would favor vehicles with a high share of European value added. Together, they account for more than 60% of vehicle production in the European Union, according to the reporting that first described the proposal.

The move comes as Europe’s auto industry faces intense competitive pressure from China, especially in electric vehicles, where battery costs and supply chains remain strategic vulnerabilities.

What the carmakers are asking for

In the proposal described in the coverage, Volkswagen, Renault and Stellantis want at least 70% of a vehicle’s value to be generated in the EU and the European Economic Area. The remaining 30% could come from outside Europe.

They also want the requirement to produce battery cells in Europe to be delayed until 2030. That would give manufacturers and suppliers more time to adapt their sourcing and production networks.

The request is not just about branding. A formal content rule could determine which vehicles qualify for public support, preferential treatment in procurement or other incentives linked to the EU’s industrial policy.

Why the issue matters now

The Financial Times reported that the European Commission is already considering measures that would link some support for vehicles to assembly and local-content conditions. That makes the question of what qualifies as "made in Europe" commercially significant for both European brands and foreign manufacturers with plants in the bloc.

Battery supply chains sit at the center of the debate. Batteries are the most expensive component in many electric vehicles, and Europe has been trying to reduce reliance on imports while avoiding a sharp rise in vehicle costs.

A stricter local-content rule could support European manufacturing and encourage more investment inside the bloc. It could also raise costs if suppliers are forced to localize production faster than planned.

Policy backdrop in Brussels

The proposal lands in the middle of a broader EU effort to strengthen industrial competitiveness and reduce dependence on Chinese manufacturing in strategic sectors.

The European Commission’s Industrial Accelerator Act is part of that wider push and is meant to support sectors such as electric and hybrid vehicles. Earlier background reporting also described a draft approach using a "Made in EU" principle for strategic industries, including autos.

That wider framework explains why the content threshold matters. If Brussels ties subsidies or purchasing preferences to local production, it will have to decide whether to use a strict threshold, a softer definition or no formal rule at all.

Who is affected

The immediate beneficiaries of a tougher rule would be large European automakers and suppliers that already have substantial production in the region.

But the proposal would also affect non-European manufacturers with factories in Europe, including companies such as Toyota, Honda, Jaguar Land Rover and Chery. Any definition of "made in Europe" could determine how much imported content they can use and still qualify for support.

The stakes extend beyond carmakers. Battery producers, parts suppliers and governments trying to attract investment would all be affected by where the line is drawn.

What happens next

For now, this is an industry push rather than settled EU policy. The key question is whether the Commission responds formally and whether member states or lawmakers back the 70% threshold or the proposed 2030 timing for battery cells.

The reporting leaves open whether Brussels will adopt the carmakers’ preferred definition, a weaker version or a different approach entirely. It also remains unclear how much support the idea will get from other manufacturers and countries that could be hurt by a more restrictive rule.

The debate is likely to continue as the Commission works through its broader industrial package and as automakers press for more clarity on what Europe means by European-made.