Stellantis and Renault urge UK to join EU car protection rules

Senior executives from Stellantis and Renault have called for the United Kingdom to be included in the European Union’s proposed industrial protection measures, while simultaneously urging the British government to restrict the import of Chinese vehicles. The leaders of the two major automotive groups argued that the UK should be treated as equivalent to the EU’s 27 member states for the purposes of the new “Made in Europe” legislation. This stance comes as the bloc seeks to ensure that public subsidies and procurement contracts benefit European manufacturers rather than competitors from outside the region.

Emanuele Cappellano, who oversees Stellantis’s European brands including Fiat, Citroën, Opel and Vauxhall, and François Provost, the chief executive of Renault, made their remarks at the Paris motor show. The event was attended by French President Emmanuel Macron and featured numerous Chinese manufacturers, including Li Auto, GAC and Chery, who are pursuing ambitious expansion plans in Europe. The executives’ comments reflect a broader industry concern that the UK risks being excluded from key industrial frameworks if Brussels adheres to a strict definition of “European” that is limited to EU member states. Such exclusion would prompt intense lobbying efforts from both the UK government and the domestic car industry to secure inclusion.

The proposed Industrial Accelerator Act aims to mandate that vehicles qualify for electric vehicle grants and public sector purchases only if they are manufactured in Europe and contain a sufficient proportion of European parts and materials. Currently, automotive manufacturers and politicians are negotiating the specific details of these requirements. If the EU maintains a narrow definition of the region, Britain could be left out, a scenario that Stellantis views as problematic given its manufacturing footprint in the country. The company operates a facility in Ellesmere Port, Merseyside, which produces small vans, highlighting the tangible industrial presence that the executives wish to protect under the new rules.

Cappellano stated that the UK needs to be equalised with the EU 27, citing the historical closeness of the British market to Europe and the significant relationships and footprints the companies maintain there. This position is supported by Europe’s main automotive lobby groups, ACEA and Clepa, which have also advocated for UK inclusion. However, some parts of European manufacturing, including France’s industry minister, have argued that the UK should be excluded due to Brexit. Despite these divisions, Provost insisted that there is no alternative to a deal between the UK and the EU, provided that the British government takes decisive action regarding trade policies.

The executives linked their support for UK inclusion to the condition that London stops allowing unlimited Chinese car imports. Provost argued that if the UK wishes to join the European ecosystem and maintain a strong automotive industry, it must make decisions that reflect an industrial ambition. He suggested that while the industry should not be closed to Chinese competitors, any manufacturer operating in Europe must deeply invest in the entire value chain, including final manufacturing, suppliers, research and development, and technologies. He noted that there are open questions about the level of imports if the UK is willing to join the framework of the Industrial Accelerator Act.

Cappellano echoed this sentiment, stating that it is difficult to defend an industrial footprint while keeping the market completely open to imports. He urged the UK to define its priorities clearly, suggesting that tariffs on Chinese imports should be considered. London has so far rejected pressure to impose its own tariffs, although UK business secretary Jonathan Reynolds said this month that the decision was under review. The executives also expressed scepticism about including countries beyond the EU, such as Japan, Turkey and Morocco, in the rules, arguing that a larger definition of European scope is not necessarily required. Finally, Cappellano advocated for more time until 2030 for manufacturers to source batteries from within Europe, noting that China is dominant in the global supply of batteries and that building up the European industry will take longer.