Senior executives from two major European automakers have called for the United Kingdom to be treated as part of the European Union for purposes of forthcoming industrial protection measures, while simultaneously recommending that Britain impose limits on imports of vehicles from China.
Emanuele Cappellano of Stellantis and François Provost of Renault made their positions known during the Paris motor show earlier this week. The executives argue that the UK should receive the same treatment as the EU’s 27 member states under proposed “Made in Europe” legislation designed to channel subsidies and public procurement benefits to European manufacturers. Stellantis operates an automotive factory in Ellesmere Port in the United Kingdom, and the company maintains significant business relationships across Europe.
The backdrop for these negotiations involves substantial challenges facing Europe’s automotive sector. Demand remains below pre-pandemic levels while manufacturers invest heavily in electric vehicle production. Concurrently, Chinese carmakers have significantly expanded their market presence, benefiting from the transition to EV technology which has opened pathways for new competitors. The EU announced this week that it will implement a quota limiting hybrid electric vehicle imports from China to 350,000 vehicles annually, with the measure set to take effect in December.
Provost stated that Britain must accept certain conditions if it wishes to participate in the European automotive ecosystem under the proposed Industrial Accelerator Act. He emphasized that any UK inclusion would require commitments regarding Chinese vehicle imports and deeper investment across the automotive value chain, including manufacturing, supplier networks, research and development, and technology sectors. Cappellano similarly contended that Britain must choose between maintaining an open market for imports and protecting its industrial base, asserting that both objectives cannot be pursued simultaneously.
The UK government has previously resisted implementing its own tariffs on Chinese imports, though the business secretary indicated this month that the government is reconsidering the matter. European automotive industry associations have supported UK inclusion in the new rules, though some French officials had previously argued the country should be excluded given its departure from the European Union.
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