European automotive suppliers call for stronger EU content rules

The European Association of Automotive Suppliers (Clepa) has urged EU policymakers to preserve strong European content requirements in the proposed Industrial Accelerator Act (IAA), arguing that the legislation is needed to maintain manufacturing, investment and innovation within Europe.

Ahead of the EU Council meeting on June 18, Clepa welcomed what it described as growing support across the automotive sector for a framework that incentivizes production in Europe. The association called on the European Parliament and Council to retain the European Commission's definition of a "European vehicle" in the final legislation.

According to Clepa, around 75% of the parts used in vehicles assembled in Europe are currently produced locally, citing a recent study by Roland Berger. The association warned that broadening the methodology used to calculate European content without adjusting the threshold would weaken incentives to source components from European suppliers and could encourage further relocation of manufacturing activities.

Clepa also highlighted increasing competition from China. Imports of automotive components from China into the EU reached €8.2 billion in 2025, turning a bilateral trade surplus of nearly €7 billion five years ago into a deficit of €0.7 billion.

The association estimates that up to 350,000 jobs could be lost by 2030 if European suppliers continue to face what it considers unfair competition from heavily subsidized imports.

To strengthen supply chain resilience, Clepa called for the automotive component sector to be fully covered by the IAA, for foreign direct investment thresholds in battery and electric vehicle supply chains to be recalibrated, and for industrial cooperation with partners such as the UK and EFTA countries to be expanded through a risk-based approach.

While describing the Industrial Accelerator Act as an important first step, Clepa stressed that broader measures to improve Europe's competitiveness as a manufacturing and investment location will be needed to keep automotive innovation and production anchored in the region.

Source: Clepa, Photo: Fotolia