acf domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/ecg/ecgassociationdev/wp-includes/functions.php on line 6121Automotive News Europe — 2026-06-29
Automotive Industry
Renault Group, Stellantis, Toyota, Ford and other major European automakers have spent billions to establish lower-cost production bases in Morocco and Turkey. The EU’s proposed “Made-in-Europe” local content rules could erase some of that economic advantage.
The proposal, released in March as part of the Industrial Accelerator Act, would broadly limit access to electric vehicle incentives and other public support programs to EVs that are assembled within the EU and have at least 70 percent of the vehicle’s value of European origin.
The debate pits the EU’s goal of protecting European jobs and reducing China reliance against automakers’ need for low-cost production, especially for small cars, to remain competitive.
If adopted as drafted, it would exclude EVs from lower-cost countries outside the EU — potentially millions of cars based on installed capacity. For the moment, most cars built in Morocco and Turkey have combustion-engine powertrains, some with mild- or full-hybrid electrification, and a few with plug-in hybrid technology.
But if the EU’s plan to limit car sales to zero-emission vehicles after 2035 is put in place, future generations of cars built in those countries would most likely be battery-electric vehicles.
The draft has left open the question: Would countries with favorable trade agreements with Europe such as Morocco and Turkey be considered part of Europe? Other countries that could be included are the U.K., South Korea and Japan.
Renault, Stellantis, VW call for easing local-content proposals
In a response to the possibility of losing incentives for cars built in Morocco or Turkey, on June 12 Renault Group, Stellantis and Volkswagen released a new local-content proposal that called for 70 percent of vehicles sold in the European Union to source 70 percent of their value from within the 27-country bloc, covering the full value chain from engineering to manufacturing.
“This means that if 70 percent of a manufacturer’s fleet meet this requirement and qualifies as Made in Europe, the entire fleet is automatically considered Made in Europe,” the proposal said.
A Renault spokesman said the proposal was tailored in part to ensure that cars built in Morocco and similar countries would still be viable economically.
“The proposal should preserve not only the local content in Europe, which is essential for us, but also preserve our ecosystem here,” the spokesman said at a media event in Tangiers on June 23.
More than 500,000 cars were built in Morocco in 2025 by Renault and Stellantis, with most exported to Europe. Automakers benefit from low labor costs, support from a stable government and a favorable shipping location just across the Strait of Gibraltar from Europe.
With a just-announced doubling at Stellantis’ Kenitra factory, overall capacity in the country is set to reach nearly 1 million vehicles. Key vehicles built in Morocco include the Dacia Sandero, Europe’s bestselling car in 2025; Peugeot 208 small car, a perennial top 10-seller; and Dacia Jogger.
About 750,000 vehicles were exported from Turkey to the EU last year, mainly by Renault, Toyota, Ford, Fiat and Hyundai.
Debate on the Industrial Accelerator Act is expected to continue until the end of this year, with the EU’s tripartite debate unlikely to start until the first quarter of 2027. Full ratification is not likely until the second half of 2027, industry sources said.