The European Automobile Manufacturers’ Association (ACEA) has outlined its position on the EU’s Industrial Accelerator Act (IAA), urging changes to better support the automotive industry’s manufacturing base in Europe.
Concerns Over Costs and Market Challenges
ACEA warns that while protecting EU manufacturing and reducing reliance on foreign clean technology is important, the automotive sector faces significant pressures. These include a shrinking European market, rising production costs, tougher regulations, and intense global competition.
The industry is investing heavily in electrification to meet upcoming 2030 targets. ACEA stresses that the IAA should offer enough advantages for cars and parts made in Europe to offset the higher costs associated with local manufacturing.
Key Recommendations for the Industrial Accelerator Act
ACEA’s paper suggests several focused changes to make the IAA more effective and fair for vehicle makers:
- Limit the Act’s geographic coverage to the EU27 plus the UK, while still protecting investments in countries like Turkey and Morocco.
- Revise the rules for calculating “local content” to better reflect the value added by manufacturers in Europe and their important role in exports.
- Set realistic targets for electric vehicle battery production that match the current pace of European battery manufacturing growth.
- Adjust the rules to fit the needs of different vehicle types—such as cars, vans, trucks, and buses—since each segment has unique cost structures and supply chains.
ACEA emphasizes that the Act should be part of a wider industrial strategy to strengthen Europe’s competitiveness and industrial future.
Industry Impact and Broader Context
The automotive sector is a major part of Europe’s economy, employing 13.5 million people and contributing over 8% of the EU’s GDP. It also generates significant tax revenue and trade surplus, and leads in research and development spending among EU industries.
With these stakes in mind, ACEA says the IAA needs fine-tuning to avoid risking the erosion of Europe’s auto manufacturing and to support an industry undergoing major change.
More details from ACEA’s position are available in their full publication.
Source: acea.auto