Stellantis and Renault Back UK for EU Car Industry Protection 2026

Stellantis and Renault have backed the UK car industry for inclusion in proposed EU rules to protect European automotive manufacturing, but they also urged the British government to consider limiting imports of Chinese cars. The support came during the Paris motor show, where executives from both companies voiced their opinions on the "Made in Europe" legislation.

Why Stellantis and Renault Support UK Inclusion

Emanuele Cappellano, who leads Stellantis's European brands including Fiat, Citroën, Opel, and Vauxhall, and François Provost, CEO of Renault, argued that the UK should effectively be counted as one of the EU's 27 member states for the purposes of the proposed legislation. The new rules aim to ensure EU subsidies and government procurement benefits Europe's industry rather than helping manufacturers from other countries. By including the UK, the executives believe the European car industry can present a united front against external competition.

The UK is a significant market for both Stellantis and Renault, and its inclusion would help maintain a level playing field. The executives spoke at the Paris motor show, which was attended by French President Emmanuel Macron, highlighting the political importance of the issue.

Pressure from Chinese Carmakers

Europe's car industry is under enormous pressure as it copes with lower demand than before the coronavirus pandemic, while also investing tens of billions of euros in shifting production to electric vehicles (EVs). At the same time, Chinese carmakers' market share has soared as the transition to EVs opens the door to new entrants.

Brands including Li Auto, GAC, and Chery were among a host of Chinese manufacturers exhibiting in Paris with ambitious European expansion plans. The EU confirmed on Monday it would limit the number of hybrid electric vehicles imported from China to 350,000 cars a year. This move is part of broader efforts to protect European jobs and manufacturing capabilities.

Key Takeaways

• Stellantis and Renault support UK inclusion in EU car protection rules.
• The UK should be treated as an EU member for "Made in Europe" legislation.
• Chinese car imports face new limits, with hybrid EV cap set at 350,000 annually.
• European automakers are investing heavily in EV transition amid lower demand.

Comparing EU and UK Car Industry Positions

Implications for the UK Auto Industry

If the UK is included in the EU's protectionist measures, it could help safeguard jobs and investment in British car manufacturing. However, it would also require the UK to align with EU trade policies, which could limit its ability to strike independent trade deals. The British government has not yet responded to the proposal, but it is likely to face pressure from both domestic manufacturers and international partners.

The call to limit Chinese car imports reflects growing concerns about the competitiveness of European automakers. With Chinese brands rapidly gaining market share, especially in the EV segment, traditional manufacturers are seeking government intervention to maintain their position.

FAQ

The support from Stellantis and Renault underscores the growing anxiety within the European auto industry about Chinese competition. As the EV transition accelerates, the decisions made in the coming months will shape the future of car manufacturing in both the EU and the UK.