Car prices rise due to emissions tech costs

New car prices have increased notably in recent years, mainly because manufacturers are investing heavily in low-emission technologies to meet environmental regulations and consumer demand for greener vehicles.

EU promotes 'Made in Europe' strategy

The European Union is pushing a strategy called "Made in Europe," which aims to allocate a portion of public subsidies and large fleet contracts to vehicles produced within Europe. This is part of a larger industrial strategy set out in the Industrial Accelerator Act, which uses origin and production criteria to determine eligibility for public funding and contracts.

EU limits hybrid vehicle imports from China

As part of the strategy, the EU has reached an agreement with China to restrict the import of hybrid and plug-in hybrid vehicles. This move is intended to reduce competition for European-made vehicles but has drawn criticism from some industry players.

Toyota opposes EU's approach

Toyota Motor Europe has strongly opposed the EU's strategy, arguing that it could harm long-term partnerships with countries like Japan, the United Kingdom, Turkey, and South Korea. Instead, Toyota supports the idea of "Made with Europe," which promotes an open and integrated European automotive industry that includes international partners.

Toyota proposes 70% European content target

Toyota suggests aiming for a European content share of around 70% in the coming years, rather than requiring 100% European production immediately. This approach, the company argues, would help control costs and keep car prices manageable for consumers.

Industry leaders warn of supply chain risks

Ola Källenius, CEO of Mercedes-Benz Group AG and president of the ACEA, has warned that the EU's efforts to protect its automotive industry could raise production costs and disrupt global supply chains. He emphasized that modern cars rely on components from around the world to remain efficient and cost-effective.

Källenius urges open trade relations

Källenius cautioned against turning the EU's strategy into a rigid preference for local production, arguing that Europe cannot isolate itself from key trade partners. He urged the EU to finalize more trade agreements, highlighting progress on deals with South America and India.