In an open letter filled with venom, Antonio Filosa and Oliver Blume, respectively the directors of Stellantis and the Volkswagen group, take a stand to defend the European automotive industry. Their message is clear: it is time to relaunch “made in Europe” to preserve jobs and ensure fair competition against imports. The question is: can Europe really do without the Asian giants and their cheap batteries?
An alarm call for the industry
Not a day goes by without an association, a political party, or a manufacturer addressing the European Commission to demand concrete actions aimed at saving the market and the automotive industry of the Old Continent. Today, it is the turn of Antonio Filosa and Oliver Blume who, in their letter published in the Italian economic newspaper Il Sole 24 Ore, present an alarming diagnosis about the future of the automotive industry in Europe. For them, the solution lies in promoting “made in Europe”.
In Europe, for Europe
Filosa and Blume start from a reflection on batteries, before broadening their discourse to the entire market:
“Our companies have always built cars for Europeans. Approximately nine out of ten vehicles we sell in the EU are also produced here. However, our European activity faces competition from importers who operate under less stringent regulatory and social conditions than those of the EU. […] Battery cells are the most evident example of Europe’s strategic dilemma. We are investing billions in their production. As Europeans, we must master and produce this fundamental technology ourselves throughout the entire value chain. But at the same time, our European customers rightly expect us to offer electric vehicles as affordably as possible, a condition essential for the success of electromobility. However, the lower the price of a car, the greater the pressure to import the cheapest possible batteries.”
The issue of costs thus clearly arises: producing in Europe is expensive and, to reduce the prices of electric cars, what do we do? We turn to those who allow savings. Yes: the Chinese. A vicious circle that the two directors believe can be broken thanks to “made in Europe”.
A bold strategy
“The good response to this dilemma is a “Made in Europe” strategy, based on two simple principles. First, anyone selling vehicles to European customers should also produce them under similar conditions. This ensures fair competition. Secondly, European taxpayers’ money should be used in a targeted manner to support European production and attract investments to the EU.”
Cars produced in Europe, identified by a dedicated label, could benefit from national aids and priority pathways in public markets. This is not a protectionism in the Trump style, carried out through tariffs, but a path that values the European automotive industry, protecting its sustainability and jobs. Its importance to Europe is, moreover, strategic, as it represents 8% of the EU’s GDP.
Necessary incentives
Another mechanism to encourage automotive production in the Old Continent would involve CO2 vouchers:
“Every electric vehicle “Made in Europe” should receive a CO2 voucher. And if a manufacturer meets the “Made in Europe” criteria for a significant part of its fleet, this CO2 voucher should also be recognised for all its electric vehicles.”
In this way, according to Filosa and Blume, manufacturers would be more incentivised to maintain production in Europe, thus avoiding hefty fines, and could allocate those funds to research and development.
Brussels in the manoeuvre
Naturally, the ball is now in Brussels’ court which, after having slightly revised downwards the emissions targets for 2035, will have to respond to the ACEA (which is calling for incentives for second-hand cars) as well as to the Filosa/Blume tandem. The game for the survival of the car industry in Europe is still at stake.
With these ambitious proposals, Stellantis and Volkswagen seek to revitalise a sector in crisis while preserving an ancestral know-how. If Europe wants to remain competitive in the global automotive market, it will inevitably have to review its script and its priorities. The “made in Europe” could be the key to navigating the turbulent waters of the current automotive industry.
