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Toyota and JLR warn EU ‘Made in Europe’ rules could threaten jobs and investment

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Toyota and Jaguar Land Rover (JLR) have warned that proposed “Made in Europe” production requirements could jeopardize investment and employment while making European-built vehicles more expensive than Chinese-made competitors.

Under current European Union proposals, corporate fleet vehicles and small electric vehicles would need to be assembled within the bloc to qualify for public procurement contracts and subsidies.

The proposals have triggered a strong backlash from global automakers that export vehicles to Europe from countries including the United Kingdom, Türkiye and Morocco.

As part of the Industrial Accelerator Act (IAA), the EU is also proposing a 70% local-content threshold for vehicle components, excluding batteries, as a condition for eligibility for subsidies or public procurement contracts.

JLR, which is owned by India’s Tata Motors, said the proposals would increase costs for manufacturers that would be required to provide evidence of where their components are sourced.

Executives from other automakers have also said that compiling customs documentation to verify the origin of components supplied by smaller suppliers would be difficult.

“The IAA imposes additional costs on manufacturers and makes European vehicles more expensive. It does nothing to address the fundamental structural differences that make European manufacturing less competitive than China,” JLR said.

Speaking at an Automotive News event in Brussels on Wednesday, Yoshihiro Nakata, head of Toyota’s European operations, warned that excluding key international partners from the “Made in Europe” rules could “undermine future investment, jobs and technology transfer.”

The world’s largest automaker, which operates eight factories across Europe and the United Kingdom and employs 25,000 people in the region, called for vehicles manufactured in Japan, the United Kingdom and Türkiye to remain eligible for IAA subsidies.

“Europe’s resilience depends not only on local production but also on working with partners to create regional scale and shared success. By working together, we are all stronger,” Nakata said.

JLR also urged the EU to assess manufacturers’ overall contribution to European economies — including through exports from the bloc — rather than focusing solely on where vehicles are assembled.

The company warned that excluding the United Kingdom from the framework would have serious consequences across the industry.

“Replacing UK content with EU content could destabilize both the UK automotive supply chain and the EU supply chain because of their interdependence.”

Nissan, one of the United Kingdom’s largest automotive employers, has previously warned that it would close its flagship Sunderland plant if the policy were implemented.

Such job losses would run counter to the objectives of the IAA, which was proposed in March by French Commissioner Stéphane Séjourné as part of Brussels’ effort to reverse the bloc’s industrial decline.

The legislation aims to increase manufacturing’s share of the EU economy from 14.3% in 2024 to 20% by 2035.

The proposal already allows manufacturers in other clean-technology sectors located in countries that have free trade agreements with the EU to benefit from “Made in Europe” status.

There are indications that member states and lawmakers will seek to amend the legislation to include UK-based automotive production.

French Trade Minister Nicolas Forissier told the Financial Times two weeks ago that Brussels needed to resolve the “problem” of the United Kingdom’s exclusion from the programme, while a European Commission official acknowledged that member states, including Germany, also support UK participation.

A senior member of the European Parliament familiar with the negotiations said the Parliament could also review the proposal’s geographic scope in order to fully include the United Kingdom.

However, the current proposal is supported by other automakers, including Volkswagen and Stellantis, as well as many automotive parts manufacturers.

Benjamin Krieger, secretary-general of auto supplier association Clepa, said the group supports extending the programme to the United Kingdom and other free-trade partners but would oppose any dilution of the requirement that 70% of vehicle content be produced in Europe.

“We need to stop the bleeding. If you import everything, vehicles will of course become cheaper, but we would sacrifice manufacturing in Europe,” Krieger said.

The European Commission said its proposals on corporate fleets and small electric vehicles are “key initiatives supporting our green transition” and that these objectives should also translate into “growth and manufacturing activity” within the EU supply chain.

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Most EU citizens reject fast-track Ukraine accession, poll finds

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An opinion survey conducted across the European Union has revealed that 53% of bloc citizens oppose admitting Ukraine to the EU through an accelerated process in the coming years.

According to the study carried out by the Bertelsmann Foundation, 47% of EU residents support the idea of fast-track membership.

The most pronounced opposition to rapid accession was recorded in Romania at 60%, followed by Germany at 59%, and France and Poland at 57% each.

The lowest resistance to Ukraine’s accelerated membership was found in Sweden at 31%. This figure stood at 37% in Spain and Portugal, and remained at 43% in the Netherlands.

Domestic support for the process remains exceptionally high; 83% of the public in Ukraine want to join the bloc as soon as possible.

Europeans differ over defence contributions and strategic benefits

The survey also examined perceptions regarding the defence of the continent. Some 58% of Ukrainians believe that their “resistance against Russia’s military campaign protects the entire continent and the EU as a whole.”

In contrast, 29% of bloc citizens share the view that the EU and its member states contribute more to defending the union than Ukraine does.

While 23% of participants view the efforts of both sides as equal, the share of those who consider Ukraine to be the bloc’s “primary protector” remains at 16%.

The study also indicates that low expectations concerning the tangible benefits Ukraine would provide to the bloc contribute to the limited support for its membership.

Only 14% of surveyed Europeans believe that this accession will make the EU stronger and more influential on a global scale. Meanwhile, the proportion of respondents who anticipate that Ukraine’s entry will increase the bloc’s resilience was measured at 11%.

Timetable debate persists in the negotiation process

Ukraine applied for membership immediately after Russia’s military intervention and gained candidate status in 2022.

The accession process encompasses a 33-chapter reform package organised under six clusters, which aims to guarantee democratic and economic standards.

Formal accession talks began in June 2024. The negotiation process, which had long been blocked by Hungary, made progress after Peter Magyar took office as the country’s prime minister.

Magyar also succeeded in having the term “accelerated accession” for Ukraine removed from EU texts.

Magyar argued that a contrary approach would send the wrong message to Western Balkan nations, such as Serbia, Albania, Montenegro, and North Macedonia, which have worked towards membership for years.

Ukrainian President Volodymyr Zelenskyy has called for the membership process to be completed by 2027, stating that this would provide a fundamental security guarantee for both Ukraine and Europe.

On the other hand, circles within the bloc that oppose rushing the process insist on the complete fulfilment of all conditions, including anti-corruption measures.

Meanwhile, the EU Ambassador to Ukraine, Katarina Mathernova, points to 2030 as a likely accession date.

For membership to take place following the completion of negotiations, all 27 EU member states must grant unanimous approval.

So far, only the first of the six chapter clusters, covering fundamental values and principles such as the rule of law, human rights, and the judiciary, has been opened for Ukraine.

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NATO unveils 32-nation defence strategy to counter adversaries

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NATO Supreme Allied Commander Europe (SACEUR) Alexus Grynkewich has unveiled a new defence strategy aimed at rendering any attack against an alliance member entirely futile.

Speaking at the Warsaw Security Forum, Grynkewich said the concept, titled the “Theory of War”, is designed to prevent hostile elements from infiltrating NATO territory and waging conflict there.

Arguing that they aim to reassure the one billion people living within the alliance’s borders, Grynkewich maintained that they also wish to send a message to adversaries such as Russia that NATO is prepared for a potential invasion.

“If we are attacked, we are ready to fight even tonight,” Grynkewich said.

Three-stage defence plan enters into force

Approved by all 32 alliance members, the plan combines land forces and conventional weapons systems with advanced technologies such as unmanned aerial vehicles, counter-drone systems, and artificial intelligence.

Lessons drawn from ground and air combat in Ukraine, as well as current conflicts in the Middle East, play a decisive role in shaping the strategy.

According to Grynkewich, the new defence doctrine rests on three fundamental phases that form the core of NATO’s approach:

The first pillar of the plan, the “block” phase, focuses on preventing hostile forces from seizing allied territory.

In this context, NATO ground components will engage directly with attacking units, restrict their manoeuvrability, and neutralise forces attempting to breach alliance borders.

Should the assault continue, the second phase (“blunt”) will come into play, deploying autonomous systems requiring minimal human intervention alongside advanced sensor networks to slow the momentum of the attack and wear down advancing forces.

These systems will detect threats in real time, combining capabilities across different operational domains to halt the adversary’s advance.

The final stage, the “break” phase, will target not the attacking units directly, but the operational warfighting system that sustains them.

Command centres, supply chains, and logistics routes will be struck using long-range precision strike systems and sensor networks, eliminating the adversary’s ability to sustain military operations.

“Enemy commanders will not be able to direct their troops, their supply lines will be severed, and their logistics vehicles will be destroyed,” Grynkewich said.

Strategy aims to defend borders rather than gain territory

Noting that NATO has no intention of acquiring territory and that the strategy is entirely defence-oriented, Grynkewich said, “We have no plan, intention, or ambition beyond protecting our citizens and our territory.”

Stating that he considers the likelihood of a direct attack on alliance territory to be low, the commander nevertheless stated that they would respond without hesitation to any attempt targeting allies.

Addressing questions regarding US commitment to the alliance, Grynkewich recalled that Washington reaffirmed its adherence to Article 5 at the NATO summit in July.

Article 5, which forms the cornerstone of NATO’s collective defence principle, stipulates that an armed attack against one ally is considered an attack against all members.

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Germany detains two Turkish suspects over Polish Starlink arson

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Polish authorities have announced that German police detained two Turkish citizens suspected of setting fire to a Starlink station near Warsaw last month.

Tomasz Siemoniak, Poland’s minister coordinating the special services, told a news conference in Warsaw on Monday that Poland has requested the suspects’ extradition and has “no doubt” that Russian secret services were behind the arson attack.

“It should also be noted that Russian intelligence agencies are increasingly turning to people linked to the criminal underworld,” Siemoniak said at the press conference.

In a post on X, Prime Minister Donald Tusk described the incident as another “act of hybrid warfare” and said those responsible for the sabotage would be brought to justice in Poland.

Interior Minister Marcin Kierwinski said the two Turkish citizens would be charged in Poland with carrying out an act of sabotage on the orders of a foreign intelligence agency.

Power supply equipment at a Starlink ground station serving Eastern Europe, including Poland and Ukraine, caught fire on the night of 23 September.

The incident did not cause a major disruption to internet service. The blaze, however, completely destroyed the station’s electrical system and backup generator.

Poland, a key transit route for Western aid to Ukraine, has faced a series of suspicious incidents recently.

Numerous cyberattacks have targeted public utilities, including water and energy infrastructure as well as hospitals.

In addition, damage to a railway line between Warsaw and the Ukrainian border was attributed by officials to Russian sabotage.

In late July, a Russian missile also landed in Poland.

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