Volkswagen, Stellantis and Renault have called on European Union (EU) policymakers to introduce measures supporting automotive manufacturing across Europe.
The three carmakers, which collectively represent around 60% of vehicles produced in the EU, have put forward proposals to EU, according to Bloomberg, as part of negotiations over the bloc's forthcoming Industrial Accelerator Act.
Their submission seeks a more defined framework to boost local sourcing, development work and vehicle assembly within the region, amid mounting competition from Chinese carmakers.
In a joint statement reported by Bloomberg, the firms said that rewarding local content would support manufacturers confronting an “unprecedented challenge to their competitiveness due to significant technology gaps in strategic areas, intense global competitive pressure and persistently high energy, manufacturing and regulatory costs”.
According to the companies, incentives linked to local content would help offset mounting competitive pressures arising from technology gaps, elevated energy and production costs, and the growing presence of lower-priced Chinese EV manufacturers.
One proposal calls for relaxed criteria under the EU's “Made in Europe” plans.
Under this change, vehicles would qualify for support measures if at least 70% of their value comes from parts and work carried out within EU member states.
This would also extend to Norway, Iceland and Liechtenstein.
The carmakers also proposed widening "super credits", currently available for EVs built in Europe, to cover all electric vehicles produced locally.
They further suggested that research and development work should count towards local content thresholds.
Vehicle assembly should be included on the same basis, according to the submission.
The proposals come as European carmakers continue to navigate the shift towards electric mobility alongside subdued demand.
Competition is also mounting from Chinese brands such as BYD and SAIC Motor's MG, both of which have expanded their presence in Europe through competitively priced electric models.
The European Commission put forward a draft Industrial Accelerator Act in March, and the legislation is currently making its way through the EU's legislative process.
Separately, non-EU manufacturers, including Toyota Motor, Nissan Motor and Jaguar Land Rover, have raised concerns that the proposals could put components made in countries such as the UK, Japan and Turkey at a disadvantage.
Earlier this week, Toyota Motor Europe President and CEO Yoshihiro Nakata called for an “inclusive approach with trusted partners” and warned of “severe” consequences for investment and commercial activities if the framework excludes key manufacturing locations outside the EU.
