European carmakers’ association ACEA urges the EU to protect existing auto investments in Morocco and Turkey under the draft Industrial Acceleration Act.
As the European Union debates its draft Industrial Acceleration Act — legislation designed to shield Europe’s industrial base, speed the shift to clean technologies and reduce economic dependence on outside powers for critical supply chains — the European Automobile Manufacturers’ Association (ACEA) has urged Brussels to bolster European industrial strength while protecting the existing investments of European manufacturers in Morocco, according to a position paper reviewed by Hespress.
The document says Europe’s auto sector supports the thrust of the act in defending manufacturing within the EU, describing the risk of hollowing out the bloc’s industrial base as real and calling smart, targeted measures to support local manufacturing justified — while cautioning that the scale of the challenge facing the sector should not be underestimated.
At the same time, ACEA warned that the law as currently drafted threatens to tear apart existing value chains and undermine a wide range of current investments. What is needed, it argued, is a pragmatic implementation plan that strengthens EU industry rather than weakening it, and protects existing investments and jobs rather than destroying them — only then would the act become an effective industrial-policy tool.
The association noted that the auto sector is undergoing a profound transformation amid the drive toward zero-emission mobility, a shift made harder by fierce global competition, rising manufacturing costs and softening consumer demand in Europe. A clear preference for the “EU-27,” it said, is legitimate but must be gradual and include justified, targeted exceptions; excluding members’ existing plants, for instance, would freeze European investments and weaken competitiveness.
The industry body called on EU lawmakers to create viability incentives that reward industrial localization, warning that requirements to localize assembly and components would raise vehicle manufacturing costs. Without an offsetting incentive, it said, the act risks raising the cost of manufacturing in Europe without improving the commercial case for doing so. It stressed the importance of tying such requirements to measures that tangibly offset the added cost — such as granting “super-credits” for battery-electric cars and vans under CO2 emissions rules, or setting up direct financial-support schemes for public bodies to offset the extra costs of buying EU-made trucks and buses.
ACEA also urged that content be measured on the basis of the finished vehicle, not merely its parts, arguing that the currently proposed method of calculating “made-in-the-EU” content relies on components alone. That, it said, ignores the substantial value created by manufacturing the vehicles themselves within Europe — a vehicle being far more than the sum of its parts, with value also residing in research and development, advanced engineering and the highly skilled workforce behind it.
The association called for the United Kingdom to be recognized as an equal partner under a “made-in-the-EU” framework, noting that Europe’s auto sector runs a deep, integrated value chain with the UK even after Brexit. Because the EU-UK Trade and Cooperation Agreement contains comprehensive “level playing field” provisions ensuring matching standards on competition, labor and environmental protection, it argued, vehicles, components and batteries made in the UK should enjoy the same legal status as those made in the EU-27, with equal access to every policy tool.
It further stressed the need to protect European vehicle manufacturers’ existing investments by having the act’s policy instruments recognize members’ current operations in the EU’s closely integrated neighbors — Turkey and Morocco — so as to avoid freezing investments made in good faith under the regulatory framework prevailing at the time.
The association also emphasized accounting for the real differences between vehicle categories, noting that the current proposal treats cars, vans, trucks and buses identically, even though these categories differ significantly in development timelines and value chains. The law, it said, should reflect the distinct needs of trucks and buses rather than applying a one-size-fits-all model.
ACEA cautioned that the Industrial Acceleration Act alone will not restore Europe’s weakened competitiveness as a manufacturing hub, pointing to the need to keep cutting energy costs, shortening permit timelines and addressing skills shortages, while maintaining consistent capital (CAPEX) and operating (OPEX) investment in battery production. Regulatory simplification, it added, must remain a core pillar, with next year’s planned review of the EU vehicle type-approval framework offering an opportunity to cut unnecessary red tape and streamline procedures.
Sigrid de Vries, ACEA’s director general, said the sector is grappling with a shrinking EU market, fierce competition, geopolitical instability, rising manufacturing costs and mounting regulatory requirements — all while billions are being invested in the electric transition to meet ambitious 2030 targets. With some important adjustments, she said, the Industrial Acceleration Act could become a catalyst for industrial strength, and, most importantly, must be firmly anchored within a comprehensive industrial policy.
