European automakers unite against competition

Renault, Stellantis, and Volkswagen are working together in Brussels to address challenges from Chinese automakers and stricter environmental regulations. These three companies produce over 60% of all cars in Europe and want to shape upcoming laws that affect the automotive industry.

Push for European manufacturing standards

The automakers are advocating for rules that favor local production in Europe. They want the "Made in Europe" label to consider factors like engineering, research, and jobs created locally when determining a car’s origin. They suggest that a vehicle should have at least 70% of its value created in Europe to qualify for the label.

Flexibility on emissions targets requested

The companies are also asking for more flexibility in meeting CO₂ reduction goals. European law requires automakers to cut average emissions from new cars by 55% between 2021 and 2030. A 100% reduction by 2035 was initially proposed, but the European Commission now considers a 90% target. The automakers want vehicles labeled as "Made in Europe" to get special treatment under these rules.

Germany and France push for stricter targets

Germany and France have aligned politically to demand stricter emissions targets. They believe a 90% reduction by 2035 is not enough and want action as early as 2030. This pressure adds complexity to the negotiations between automakers and European policymakers.

Production cuts and job risks loom

Renault has warned that if emissions targets remain unchanged, it could cut production by up to 300,000 vehicles in Europe. This would affect the sale of less profitable internal combustion engine models first, potentially leading to job losses and factory closures. The situation highlights the tension between environmental goals and the economic realities of the automotive industry.