Volkswagen, Stellantis, and Renault Alert the EU to the Grip of Asian Competition

Volkswagen, Stellantis, and Renault have joined forces to deliver a joint appeal to members of the European Parliament, asking for a radical shift that puts the automotive industry back at the center of Brussels' geopolitical strategy. The three industrial giants, whose combined production represents about 60% of the entire automotive sector in the Old Continent, have laid out a precise proposal: the formula called "70:70 in the EU27".

The goal of the plan is to impose that 70% of the vehicles marketed in Europe must contain at least 70% of their economic value generated within the borders of the 27 member states. The manufacturers clarified that the initiative should not be limited to just the final assembly stages of vehicles, but must involve the entire value chain. The project indeed requires a deep-rooted presence in Europe for strategic activities such as engineering design, development of onboard software, production of electronic components, and advanced manufacturing. According to the companies, defending Europe's global automotive leadership passes through defining a clear, streamlined, and above all, implementable regulatory framework.

Flexibility for Small Vehicles and Countering External Competition

The crux of this industrial restructuring revolves around batteries, which constitute the most complex and costly component of electric vehicles. The three groups have urged the introduction of incentives and targeted economic support to encourage the localization of plants and the return of currently outsourced processes to Europe. This process is deemed essential to reduce dependence on global supply chains.

Another key point of the appeal developed by Volkswagen, Stellantis, and Renault touches on the management of smaller vehicles. Urban cars, historically the backbone of the European market, face significant challenges regarding economic margin during the transition to electric propulsion. To safeguard this segment, the companies have called for pragmatic flexibility in regulatory terms, necessary to lower production costs and ensure the market presence of genuinely accessible zero-emission models.

The continental supply chain currently finds itself caught in an unprecedented financial vice. On one side, there are the massive investments related to the energy transition, and on the other, the commercial pressure from global competitors, particularly Asian brands, which benefit from vertically integrated supply chains and robust government subsidies. The "Made in Europe", the three groups conclude, must not be reduced to a purely symbolic definition but must become a concrete lever to close the cost gap that penalizes European realities, safeguarding local employment and technological skills.