Stellantis and Renault back UK to get EU car industry protection
French carmakers Stellantis and Renault have publicly backed the UK's inclusion in proposed EU car industry protection rules, despite post-Brexit divisions. The executives, speaking at the Paris motor show, urged the British government to also limit imports of Chinese cars to join what they describe as the European ecosystem, as Chinese manufacturers rapidly gain market share during the shift to electric vehicles.
The EU confirmed it will cap hybrid electric vehicle imports from China at 350,000 cars annually starting in December, expected to halve China's current 6% market share. Under the proposed Industrial Accelerator Act, vehicles must be manufactured in Europe with sufficient European components to qualify for EV grants and government procurement contracts, but the UK risks being excluded if Brussels defines "European" as only the 27 EU member states.
- French carmakers back UK inclusion in EU car protection rules
- EU caps Chinese hybrid EV imports at 350,000 cars yearly from December
- UK faces exclusion unless it also limits Chinese vehicle imports
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The European Union is introducing rules to protect its car manufacturers as the industry transitions to electric vehicles. Chinese carmakers are rapidly gaining market share, so the EU is restricting their imports and requiring cars to meet European manufacturing standards if they are to qualify for government subsidies and public procurement contracts.
These new rules create a problem for the UK because Britain is no longer an EU member and may not be classified as "European" under the scheme. British car manufacturers could therefore be excluded from the government support and public contracts available to their EU counterparts.
French carmakers Stellantis and Renault have publicly supported including the UK in these protection rules. They are calling on the British government to also limit Chinese car imports and align with Europe's approach to protect the continent's automotive industry as it shifts to electric vehicles.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The UK remains geographically, technologically and economically integrated with European car manufacturing, with deeply intertwined supply chains and shared interests in facing Chinese competition. Including the UK in the Industrial Accelerator Act would strengthen the entire European automotive sector's competitive position whilst recognising the practical reality that excluding a major car-producing nation would fragment industry and undermine the stated goal of protecting the ecosystem from Chinese market penetration.
The case against
The UK chose to leave the EU and cannot expect access to internal EU market-shaping mechanisms designed for member states alone. The definition of "European" must reflect institutional and legal boundaries to maintain coherence and consistency—other non-EU countries face the same exclusion—and the UK should negotiate its own protective measures through bilateral agreements rather than treat EU industrial policy as open to non-members.