'Made in EU' auto rules risk backlash from friends and rivals
By Julia Payne
Published on March 3, 2026.
The European Union is planning to introduce 'Made in EU' rules for the auto industry, aiming to revive local manufacturing without damaging relations with major trading partners. The draft also requires minimum EU-based content in the battery pack, despite China's dominance of the global battery cell supply chain. This comes as France's small suppliers association Fiev warns that its members may have lost half their workforce between 2007 and 2024 without action. However, Germany's automakers sell over a quarter of their vehicles in China, the world's largest auto market, fear strict local-content rules could trigger a trade war. The proposal also includes parts from EU members plus Iceland, Liechtenstein and Norway, though Ford's European supply chain relies heavily on Britain and Turkey.
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