Brussels: Leading European auto firms Volkswagen, Renault, and Stellantis urged the EU to implement new 'Made in Europe' criteria requiring at least 70% of a vehicle's value to be generated within member states in a bid to shield the industrial base from global pressures, but the initiative risks harming both Turkish and European manufacturers, a sector representative warned.

According to Anadolu Agency, Mehmet Ali Yalcindag, coordinating chair of the Foreign Economic Relations Board (DEIK), stated that a 30-year Customs Union has made Trkiye an indispensable part of Europe's auto supply and value chains. He expressed concerns that classifying the country as a third country relegated to the remaining 30% quota would disrupt already established business plans and reduce regional production capacity.

Yalcindag highlighted that half of all buses operating on European roads are made in Trkiye. Including Trkiye within the new 'Made in Europe' origin scheme would allow the bloc to preserve lower-cost, high-quality production hubs, leading to a mutually beneficial scenario.

He emphasized that there are significant cooperation opportunities between Trkiye and Europe beyond the automotive sector, including energy, defense, supply chains, digitalization, and the green transition sectors. Yalcindag insisted on protecting existing gains and building upon them rather than reversing progress in these areas.

Yalcindag also stated that any alternative proposals from the EU that exclude Trkiye would not be welcomed, and they would continue lobbying on every platform with EU countries regarding this matter.

The push by European automakers comes as the European Commission is working on new industrial incentives and localization mechanisms under its 'Industrial Accelerator Act.' The three automakers, which together make up over 60% of EU vehicle production, claimed the European auto industry is under global competitive pressure and new incentives are needed, according to a joint letter to the European Parliament and EU institutions.

The letter stated that applying a 'Made in Europe' label on vehicles sold in Europe needs to be based on common rules across the bloc, such as a vehicle's development in Europe and engineering and production being conducted within the EU. It must be included in calculating the domestic-to-foreign content ratio in a vehicle.