Stellantis and Renault back UK inclusion in EU car rules, urge import action

Stellantis and Renault have supported including British carmaking in the EU’s proposed Made in Europe rules, while urging the UK to consider limiting Chinese vehicle imports. The Guardian reported the comments by Stellantis European operations leader Emanuele Cappellano and Renault Group chief executive François Provost at the Paris motor show on October 12.

The proposed Industrial Accelerator Act would connect eligibility for electric-vehicle grants and purchases by public bodies to European production and a sufficient amount of European parts and materials. Grants provide financial support; procurement refers to organisations buying goods or services. The proposal would influence which vehicles benefit from those forms of support.

The definition of Europe remains contested. Restricting eligibility to the EU’s 27 member states could leave Britain out, despite its links to European vehicle production. The UK government and industry are lobbying for inclusion, supported by the automotive associations ACEA and Clepa. Some opponents, including France’s industry minister, have argued that Brexit should leave Britain outside.

Stellantis has a direct British manufacturing interest: its Ellesmere Port plant produces small vans. Cappellano cited Britain’s historic closeness to the European market as he argued for treating it like the EU’s member states for these rules. That is a request about industrial-policy eligibility, rather than an announcement of British EU membership.

Provost said UK participation should involve an industrial ambition and decisions on import levels. He argued for investment across the production chain, including final manufacturing, suppliers, research and development, and technology. He also said the European industry need not be closed to Chinese competition: his emphasis was on competitors investing deeply in that production system.

Cappellano urged Britain to consider tariffs on Chinese imports. A tariff is a tax on imported goods, distinct from an outright numerical import limit. London had resisted pressure to add Chinese-car tariffs, but business secretary Jonathan Reynolds said this month that the decision was under review.

European manufacturers are dealing with lower demand than before the pandemic while investing tens of billions of euros in a switch to electric vehicles. Chinese carmakers have gained market share during that transition. Li Auto, GAC and Chery were among the Chinese exhibitors seeking European expansion at the Paris show, which French president Emmanuel Macron attended.

Separately, the EU confirmed a limit of 350,000 hybrid vehicles imported from China per year. It is due to take effect in December under a four-year agreement made in Beijing the previous week. The EU expects the limit to halve a Chinese market share currently at 6%. Hybrid vehicles combine combustion-engine and electric-drive technology.

That announced import quota is distinct from the still-negotiated manufacturing rules and the executives’ request that Britain reconsider tariffs. The report describes different policies at different stages, rather than one new restriction applying everywhere.

Cappellano also questioned widening the European definition to Japan, Turkey and Morocco. He referred to proposals allowing 30% of materials to come from outside the EU and argued that manufacturers should have until 2030 to source batteries within Europe. His concern was the time needed to build that industry while China dominates global battery supply.