{"id":15255,"date":"2026-06-11T15:06:55","date_gmt":"2026-06-11T12:06:55","guid":{"rendered":""},"modified":"2026-06-11T15:06:55","modified_gmt":"2026-06-11T12:06:55","slug":"toyota-and-jlr-warn-eu-made-in-europe-rules-could-threaten-jobs-and-investment","status":"publish","type":"post","link":"https:\/\/harici.com.tr\/en\/toyota-and-jlr-warn-eu-made-in-europe-rules-could-threaten-jobs-and-investment\/","title":{"rendered":"Toyota and JLR warn EU ‘Made in Europe’ rules could threaten jobs and investment"},"content":{"rendered":"

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

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.<\/p>\n

The proposals have triggered a strong backlash from global automakers that export vehicles to Europe from countries including the United Kingdom, T\u00fcrkiye and Morocco.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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

“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.<\/p>\n

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.”<\/p>\n

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 T\u00fcrkiye to remain eligible for IAA subsidies.<\/p>\n

“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.<\/p>\n

JLR also urged the EU to assess manufacturers’ overall contribution to European economies \u2014 including through exports from the bloc \u2014 rather than focusing solely on where vehicles are assembled.<\/p>\n

The company warned that excluding the United Kingdom from the framework would have serious consequences across the industry.<\/p>\n

“Replacing UK content with EU content could destabilize both the UK automotive supply chain and the EU supply chain because of their interdependence.”<\/p>\n

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.<\/p>\n

Such job losses would run counter to the objectives of the IAA, which was proposed in March by French Commissioner St\u00e9phane S\u00e9journ\u00e9 as part of Brussels’ effort to reverse the bloc’s industrial decline.<\/p>\n

The legislation aims to increase manufacturing’s share of the EU economy from 14.3% in 2024 to 20% by 2035.<\/p>\n

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.<\/p>\n

There are indications that member states and lawmakers will seek to amend the legislation to include UK-based automotive production.<\/p>\n

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.<\/p>\n

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.<\/p>\n

However, the current proposal is supported by other automakers, including Volkswagen and Stellantis, as well as many automotive parts manufacturers.<\/p>\n

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.<\/p>\n

“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.<\/p>\n

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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":1,"featured_media":15256,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[3],"tags":[19351,7546,19352,610,2518,990,805,16602,16601,19346,870,19347,19355,16409,6123,19350,6487,5487,11510,19353,19348,19345,409,19354,729,19356,2709,19349],"class_list":["post-15255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-europe","tag-benjamin-krieger","tag-brussels","tag-clepa","tag-eu","tag-european-commission","tag-european-parliament","tag-european-union","tag-iaa","tag-industrial-accelerator-act","tag-jaguar-land-rover","tag-japan","tag-jlr","tag-local-content-rules","tag-made-in-europe","tag-morocco","tag-nicolas-forissier","tag-nissan","tag-stellantis","tag-stephane-sejourne","tag-sunderland-plant","tag-tata-motors","tag-toyota","tag-turkiye","tag-uk-automotive-industry","tag-united-kingdom","tag-vehicle-subsidies","tag-volkswagen","tag-yoshihiro-nakata"],"yoast_head":"\nToyota and JLR warn EU 'Made in Europe' rules could threaten jobs and investment - 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