European automotive suppliers are calling for the implementation of technology neutrality to ensure innovation drives decarbonisation – not restrictive mandates, according to the European Association of Automotive Suppliers (CLEPA).
The upcoming Industrial Accelerator Act presents a clear opportunity to keep automotive manufacturing in Europe but its success hinges on one key question: how the EU defines ‘European-made’ components, it claims.
“This is no trial period: Automotive suppliers have announced over 100,000 job cuts since 2024,” says Benjamin Krieger, secretary general of CLEPA. “There is no strong European economy without the factory floors to support it. Right now, with high energy costs and fragmented regulations slowing companies down, producers in Europe are placed at a structural disadvantage. Measures to restore EU competitiveness will take time to deliver, that is why we need local content policies now.”
It references a recent study by Roland Berger reveals that automotive suppliers in the European Union face unfair competition from regions with lower costs, fewer regulations, unilateral tariffs, excess capacity, dumping and subsidies – a combination that threatens up to 350,000 European jobs until 2030, Kallanish notes.
“Importing the cheapest technology today hollows out our innovation capacity tomorrow,” CLEPA adds. “If Europe allows its value chains to erode, we will end up with empty factories – we will trade European independence for permanent dependency on regions with cheaper labour and weaker legal requirements.”
“The Industrial Accelerator Act must be robust. Specifically, it needs an adequate definition of ‘European-made’ vehicles and components,” it notes. “A European vehicle should consist of at least 75% European components. This level is realistic and would not drive-up prices. The study by Roland Berger shows that more than 80% of the components used in vehicles built in the EU already come from European suppliers.”
Automotive suppliers are the engine of Europe’s green transition, investing €30 billion ($35.5 billion) annually in research and development. For these innovations to succeed at scale, however, policy must align with consumer demand. Deloitte’s 2026 global automotive consumer study shows that internal combustion engines remain the leading choice for nearly half of buyers in Germany, France, and the UK while consumer preference for hybrids has risen to 14% in Germany and 23% in France.
To survive global competition and to ensure our strategic autonomy in manufacturing, the EU must move from promises to implementation, delivering these measures fully, and without further delay, CLEPA concludes.
