{"text":[[{"start":8.4,"text":"Renault has joined forces with Stellantis and Volkswagen to push for “Made in EU” manufacturing targets as the auto industry splits over how Europe can fight back against the rise of affordable Chinese electric vehicles."}],[{"start":22.75,"text":"In proposals submitted to European parliamentarians and policymakers on Friday, the three carmakers — which represent more than 60 per cent of EU vehicle production — called for a clear framework to sufficiently reward manufacturers that localise production and maintain vehicle engineering in the region. "}],[{"start":41.55,"text":"“We want to ensure that Europe remains the global powerhouse in the automotive industry,” the three groups said in a joint statement. “We need a mechanism that favours European cars and industry . . . and this mechanism must be simple, easy to implement and control.” "}],[{"start":57.199999999999996,"text":"Under current EU proposals, cars for corporate fleets and small EVs would have to be assembled within the bloc to be eligible for public procurement and subsidies. Brussels is also proposing a 70 per cent local content threshold for car components, excluding batteries."}],[{"start":73.89999999999999,"text":"Several non-European carmakers — including Toyota, Jaguar Land Rover and Honda — have expressed concerns about the framework’s geographical scope, which would exclude components manufactured in the UK, Japan and Turkey. They have also highlighted the risk of extra costs of compliance that would make vehicles made in Europe even more expensive for consumers. "}],[{"start":95.75,"text":"A so-called Industrial Accelerator Act was proposed late last year to strengthen Europe’s industrial competitiveness amid the influx of affordable EVs and plug-in hybrids from China. The draft act was published by the European Commission in March."}],[{"start":110.05,"text":"VW and Stellantis have together backed the proposals but they have been negotiating for months to get other carmakers on board."}],[{"start":117.35,"text":"In the proposals submitted on Friday, VW, Stellantis and Renault called for a simpler framework that would require 70 per cent of EU vehicles to contain 70 per cent local content coming from within the EU’s 27 member states as well as Iceland, Liechtenstein and Norway."}],[{"start":134.65,"text":"The remaining 30 per cent would remain open to manufacturing outside Europe — a ratio the three companies called “fair” but likely to be contested by other non-European manufacturers."}],[{"start":146.25,"text":"“Europe is not closing itself off,” they said. “Europe only stops the trend of further outsourcing industrial production to third countries.” "}],[{"start":154.95,"text":"They added that the “Made in EU” definition should include not just assembly but also engineering and research and development."}],[{"start":162.95,"text":"The three groups also called for the expansion of benefits to compensate for the extra costs required to boost manufacturing in Europe, where energy and labour costs are higher than in places such as Turkey and Morocco. "}],[{"start":176.04999999999998,"text":"The IAA envisions giving carmakers “super credits” for small EVs built in Europe to make it easier for them to hit emissions targets, but the three companies called for the benefits to be expanded to all EVs made inside the bloc."}],[{"start":189.99999999999997,"text":"A big test for the EU’s push for localisation will be batteries, the most expensive and important component whose supply chains are currently dominated by Chinese manufacturers. "}],[{"start":201.24999999999997,"text":"VW, Stellantis and Renault said the path for localising battery cells needed to be “realistic” and urged the timeline to be pushed back until 2030 instead of 2028, which may still prove challenging unless local battery makers such as Verkor and ACC receive additional government funding to scale production."}],[{"start":223.64999999999998,"text":"The Commission has said that proposals relating to corporate fleets and small EVs were “key initiatives in support of our green transition” and that those objectives were only achievable if they “also translate into growth and manufacturing activity” in the EU supply chain."}],[{"start":245.54999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781255368_2175.mp3"}