Volkswagen and Stellantis call on the European Union to better protect its own automotive industry in a world of increasing competition and geopolitical tensions.
“Europe is witnessing the rise of new geopolitical tensions. Trade, technology, and industrial capabilities are being used more than ever to serve national interests. The European Union must quickly choose a direction.” Stellantis CEO Antonio Filosa and Volkswagen CEO Oliver Blume made no bones about it in an op-ed presented in the French newspaper ‘Les Echos’ and brought to our attention via Bloomberg. According to the heads of the two largest European car manufacturers – although Stellantis is only partially so – it is time for the EU to actively commit to promoting European cars.
Elsewhere in the world, this is already happening. Trump’s preference for US-built products is clear, but even under Biden, there was a strong focus on the domestic auto industry. For example, electric cars in the US were only eligible for a purchase subsidy if they were at least partially built in the US. In the EU, there is already a cautious start to such a measure. The new, small, and relatively cheap car category that has been announced only offers advantages for cars built in the EU. However, according to Blume and Filosa, the EU can and must go even further with this. The top executives unreservedly acknowledge the importance of their own, European-developed technology. At the same time, they state, customers understandably demand affordable cars. As a result, in the current situation, it is quickly necessary to import cheap parts, as was announced by Renault yesterday, by the way.
According to Bloomberg, the European Commission had already intended to make a decision in January about ‘prioritizing’ cars built in Europe, but that decision has been postponed by at least a month.