Automakers express worries about EU's suggested local sourcing regulations - report
Concerns Over Local Sourcing Targets: Automakers are worried that the European Commission's "Made in Europe" proposals, which include local sourcing targets for parts, could disrupt supply chains and increase costs, with some companies pushing back against initial local content levels of up to 70%.
Impact on Innovation and Trade: Industry leaders, including BMW's CEO, warn that complex local sourcing rules could hinder innovation in Europe, while Japanese automakers express concerns that the proposals may exclude friendly trading partners and lead to unintended consequences for the transition to clean mobility.
Support from Auto Parts Suppliers: Despite the concerns, auto parts suppliers argue that local sourcing targets are essential for their survival and could stabilize investment and protect jobs, especially in light of competition from Chinese electric vehicles.
Renewable Energy Sector's Backing: The renewable energy sector, including companies like Nel Hydrogen and industry group SolarPower Europe, has shown support for the proposed local sourcing rules, indicating a broader interest in strengthening the EU's industrial base.
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