Electric vehicles made in Europe – Recycled plastic material – Stellantis and Volkswagen Warn EU Inaction Could Undermine European Car Production as CEOs Urge Strong Support for Made in Europe Electric Vehicles 06-02-2026
Electric vehicles made in Europe
Europe’s automotive industry is facing one of the most complex transitions in its history
As the shift toward electric mobility accelerates, manufacturers are grappling with rising production costs, global competition, and tightening regulatory requirements. Against this backdrop, Stellantis and Volkswagen have launched a joint appeal to the European Union, urging policymakers to take decisive action to protect electric vehicle production in Europe.
The initiative, led by Stellantis CEO Antonio Filosa and Volkswagen CEO Oliver Blume, is notable not only for its content but also for its symbolism. The two companies are fierce competitors, yet they have chosen to speak with a unified voice. Their message, published simultaneously in major European newspapers, reflects growing concern that Europe risks losing its automotive manufacturing base if targeted support measures are not introduced. electric vehicles made in Europe
At the heart of the appeal is the strategic importance of the automotive industry to the European economy
The sector accounts for around eight percent of the European Union’s gross domestic product and directly or indirectly employs approximately 13 million people. Stellantis and Volkswagen alone produce roughly nine out of ten vehicles sold in the EU on European soil, making them central pillars of industrial activity across the continent. electric vehicles made in Europe
However, the competitive landscape is changing rapidly. European manufacturers are increasingly challenged by international players, particularly those operating in regions with less stringent social, environmental, and regulatory standards. According to the two CEOs, this imbalance places European production at a structural disadvantage, especially as electric vehicles become the dominant technology. electric vehicles made in Europe
To address this challenge, Stellantis and Volkswagen propose the introduction of a Made in Europe label for electric vehicles
This label would certify vehicles that meet strict criteria across multiple stages of the value chain. These criteria would include vehicle assembly, research and development activities, electric powertrains, battery cell production, and selected critical electronic components. electric vehicles made in Europe
Electric vehicles qualifying for the Made in Europe label would be eligible for tangible benefits. These could include national purchase incentives, preferential treatment in public procurement, and other forms of policy support. The goal is to create a clear market signal that rewards European industrial value creation while maintaining consumer choice.
Yet consumer incentives alone, the two CEOs argue, are not sufficient. Producing electric vehicles in Europe remains significantly more expensive than in other regions
High energy prices, labor costs, and regulatory compliance all contribute to this gap. Without structural measures, European manufacturers may struggle to offer competitively priced electric vehicles while keeping production within the EU.
This is where CO2 regulation becomes a central element of the proposal. Filosa and Blume suggest that electric vehicles produced in Europe should receive a CO2 bonus when assessing compliance with European emissions standards.
In practical terms, this would recognize the broader environmental and industrial value of local production within the regulatory framework. electric vehicles made in Europe
Furthermore, if a manufacturer manages to certify a substantial share of its electric fleet as Made in Europe, the CO2 bonus should extend to the company’s entire electric vehicle lineup
Such an approach would encourage long-term investment in European production rather than isolated compliance efforts.
A critical focus of the appeal is battery cells, widely regarded as the most strategic component of electric vehicles. Battery production determines not only vehicle cost but also technological sovereignty.
Stellantis and Volkswagen are investing billions of euros to build battery cell manufacturing capacity across Europe, covering everything from raw materials to recycling. electric vehicles made in Europe
Despite these investments, European manufacturers face a difficult dilemma
Consumers expect affordable electric vehicles, but lower prices often depend on cheaper imported batteries, frequently sourced from outside Europe. This dynamic risks undermining Europe’s ambition to achieve industrial autonomy in a technology that will define the future of mobility. electric vehicles made in Europe
According to the two CEOs, Europe must retain control over battery technology to ensure long-term resilience. They argue that targeted subsidies for European battery cell production, combined with incentives for Made in Europe electric vehicles, are essential to balance affordability with strategic independence.
The appeal also highlights broader geopolitical and supply chain risks
Access to critical raw materials, including rare earth elements, has become increasingly uncertain as global trade becomes more fragmented. In this context, regionalizing production is not merely an economic choice but a strategic necessity.
Beyond economics and technology, the message from Stellantis and Volkswagen carries a strong social dimension. Millions of European jobs depend on the automotive value chain. A rapid shift toward imported electric vehicles could weaken local suppliers, erode skills, and create long-term employment challenges. electric vehicles made in Europe
Despite their rivalry, Filosa and Blume emphasize a shared responsibility to preserve Europe’s industrial strength
Their appeal frames the transition to electric mobility not as a race to the lowest cost, but as a coordinated effort to align climate objectives with economic sustainability. electric vehicles made in Europe
The timing of the initiative is significant. Electric vehicle sales have slowed in several EU markets, while competitive pressure from Chinese manufacturers continues to intensify
At the same time, questions remain about the feasibility of achieving the EU’s 2035 decarbonization targets without stronger industrial support mechanisms. electric vehicles made in Europe
The joint appeal could mark the beginning of a broader debate on European industrial policy. Policymakers may be forced to consider forms of targeted intervention that protect jobs and expertise while remaining consistent with single market rules and climate goals. electric vehicles made in Europe
Whether the European Commission will respond with concrete measures remains uncertain. Political balances, budget constraints, and internal divisions complicate decision-makingHowever, the message from Stellantis and Volkswagen is clear: without strategic support, Europe risks losing control over one of its most important industrial sectors.
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