European car parts supplier Valeo called on Wednesday for minimum requirements for European content in vehicles sold in the EU, saying such rules are crucial to maintain the region’s competitiveness as the industry transitions to electric vehicles.
Christophe Perillat, Valeo’s chief executive, spoke at the IAA auto show in Munich, noting that the European Commission is engaged in discussions with automakers and suppliers on policies to safeguard the sector’s future amid rising competition from China and uncertainties over tariffs.
“Such a mechanism would strengthen European sovereignty while at the same time protecting competitiveness,” Perillat said, pointing to similar measures in the United States and India. He added that he looked forward to discussing the proposal further in talks with European Commission President Ursula von der Leyen later this week.
Perillat also acknowledged that some companies remain opposed to mandatory local content rules, particularly in Germany. “We still need to convince here about the importance of local content,” he said. The European Commission has indicated plans to gradually introduce requirements for European battery cells and components.
Germany’s VDA car lobby has previously warned that efforts to boost local production should not come at the cost of excessive regulation, reflecting the ongoing debate between ensuring European resilience and maintaining industry flexibility.
Source: Reuters