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UK · AUTOMOTIVE INDUSTRY

Carmakers back UK inclusion in EU protection rules but warn on Chinese imports

Stellantis and Renault support British industry joining 'Made in Europe' scheme, but say UK must restrict Chinese vehicle imports in return.

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Automotive production line in a modern car manufacturing facility
PHOTO libraryofcongress / CC0 via Openverse

Senior executives at two major European car manufacturers have backed the UK’s inclusion in planned EU industrial protection measures, but have called on Britain to impose restrictions on Chinese vehicle imports in return, according to The Guardian.

Emanuele Cappellano, who oversees Stellantis’s European brands including Vauxhall, Citroën, Fiat and Opel, and François Provost, chief executive of Renault, said the UK should be treated as equivalent to EU member states under the proposed Industrial Accelerator Act. The legislation aims to ensure European subsidies and government procurement benefit domestic industry rather than foreign manufacturers.

Speaking at the Paris motor show, both executives emphasised that British participation would need to come with commitments to control the flow of Chinese cars into the UK market. Provost told reporters that if Britain wished to join the European industrial ecosystem, it would need to demonstrate real manufacturing ambition rather than simply acting as an open gateway for imports.

“If the UK is willing to join the European ecosystem, this is to have an industrial ambition to keep a strong automotive industry,” Provost said, according to The Guardian. He added that this meant an industry “not closed to Chinese competitors, but if you want to operate in Europe, you have to deeply invest in the whole value chain, final manufacturing, suppliers, R&D, technologies.”

EU moves to limit Chinese market share

The comments came as the EU confirmed it would cap hybrid electric vehicle imports from China at 350,000 cars annually. The quota, which takes effect in December following a landmark agreement reached in Beijing, is expected to halve China’s current 6 per cent market share in the European hybrid sector.

Europe’s automotive sector is facing mounting pressure from multiple directions. Demand remains below pre-pandemic levels whilst manufacturers pour tens of billions of euros into transitioning to electric vehicle production. At the same time, Chinese carmakers have rapidly expanded their European presence as the shift to electric powertrains opens opportunities for new entrants.

Under the proposed Made in Europe rules, vehicles would need to be manufactured within Europe and contain sufficient European-sourced parts and materials to qualify for electric vehicle grants and public procurement contracts across the EU. However, the precise definition of “European” remains under negotiation, with Britain’s post-Brexit status creating uncertainty.

UK government reviewing tariff position

Stellantis, which operates a van manufacturing facility in Ellesmere Port, Merseyside, is among the carmakers with a direct stake in British production. Cappellano told reporters it was “very difficult to defend industrial footprint and at the same time let the market completely open to import. Either one or the other.”

Major European automotive lobby groups ACEA and Clepa have also supported UK inclusion in the scheme, though some voices within EU manufacturing, including France’s industry minister, have argued Britain should be excluded following Brexit.

London has so far resisted pressure to impose tariffs on Chinese vehicle imports, but UK business secretary Jonathan Reynolds indicated this month that the government’s position is under review.

Cappellano also argued that manufacturers should be given until 2030 to develop European battery supply chains, noting that China currently dominates global battery production and that building up domestic capacity will require additional time beyond current timelines.

What this means for Poles in the UK

For Polish workers in Britain’s automotive sector, the outcome of these negotiations could have direct employment implications. The UK car industry employs around 800,000 people across manufacturing and the supply chain, with significant Polish representation in areas such as the West Midlands and North West England where major plants are located.

If Britain is included in the Made in Europe scheme, UK-based factories like Stellantis’s Ellesmere Port facility would retain access to EU subsidies and procurement contracts, helping to secure jobs. However, any requirement for the UK to restrict Chinese imports could affect the broader retail automotive market and potentially pricing for consumers.

Workers should monitor announcements from the Department for Business and Trade regarding the government’s final decision on Chinese tariffs and participation in the Industrial Accelerator Act. Those employed in automotive manufacturing may wish to follow union communications, as trade bodies will likely be consulted on any policy changes affecting the sector’s competitiveness.

Source: The Guardian — UK news. Written by the newsroom with the help of AI tools, based on the source reporting. Editorial standards