EU Leaders and Automakers Push 'Made in Europe' Rules to Counter Chinese Rivals

European political leaders and automotive executives are advocating for new domestic preference policies to protect the local industry from low-cost Chinese competition.

Volkswagen CEO Oliver Blume has voiced support for the European Union's proposed Industrial Accelerator Act, which would prioritize products with high levels of European manufacturing and materials in public procurement and subsidies. Speaking in Paris, Blume stated that these "Made in Europe" rules must reward companies that create real value and jobs within the continent. The Guardian reported that Volkswagen has a plan to cut as many as 100,000 jobs as it navigates what Blume described as the largest transformation in the company's history.

The Guardian also noted that the EU announced a deal with China on Friday to "halve" sales of hybrid cars in the bloc to prevent the European industry from being overwhelmed. Blume emphasized that while he supports open markets, European carmakers must be able to compete under comparable conditions. He suggested that businesses selling in Europe should be required to invest and develop locally to protect the region's technological independence.

French President Emmanuel Macron is also calling for a European preference policy to bolster the manufacturing sector. Euronews reported that Macron is hosting a dinner for 60 industry stakeholders, including representatives from Renault and Stellantis, while excluding Chinese brand bosses. While France has opened four battery plants and increased electric vehicle production since 2017, only 26% of new electric cars purchased in France are currently manufactured on national soil.

To regain market share against lower-priced rivals, Stellantis is betting on small, affordable electric vehicles, according to Reuters. This strategy comes as European manufacturers face high energy costs, intense competition from China, and lower consumer demand driven by high inflation.

Background

The French government has set a target of producing two million electric vehicles annually by 2030. In 2025, Insee data showed that France registered 331,000 new electric passenger cars but produced 216,000 in its own factories.