The plans, due on Wednesday as part of a drive to boost EU industry more broadly, are complicated by divisions between member states, with France taking a more protectionist line and Germany more worried about potential retaliation.
They also face pushback from automakers that rely on non-EU supplies or, like Ford and Jaguar Land Rover have major operations in nearby non-EU countries that are also lobbying Brussels. Britain, Turkey and Morocco are interested in ‘Made in Europe’ rules, but only if they are not shut out.
“If we don’t do this, there will be massive relocations,” Christophe Perillat, the Chief Executive Officer of French auto supplier Valeo said on Friday. “I’ve never seen an industry go and come back.”
Under the latest leaked version of the proposed Industrial Accelerator Act, an electric vehicle would need 70% of the cost of its parts to be manufactured in the bloc, excluding the battery, to qualify for EU subsidies.
–Reuters–
