ACEA calls for changes to Industrial Accelerator Act to boost EU auto competitiveness

The European Automobile Manufacturers’ Association (ACEA) has published its position on the proposed Industrial Accelerator Act (IAA), urging EU policymakers to refine the legislation to better support Europe’s automotive industry as it navigates an increasingly challenging competitive landscape.

While reaffirming its support for the Act’s objective of safeguarding EU manufacturing and reducing dependence on other regions for clean technologies, ACEA warns that the current proposal requires significant adjustments if it is to strengthen rather than weaken Europe’s industrial base.

The association argues that the automotive sector is already under pressure from shrinking demand across the EU, rising manufacturing costs, geopolitical uncertainty, increasing regulatory requirements and intense global competition, while simultaneously investing billions of euros to deliver the transition to zero-emission mobility.

“The risk of hollowing out the EU industrial base is real, and smart, targeted measures to support homegrown manufacturing are justified. But the scale of the challenge facing our sector must not be underestimated.

“The industry is facing a shrinking EU market, fierce competition, geopolitical instability, rising manufacturing costs and increasing regulatory requirements, while investing billions in electrification to meet ambitious 2030 targets. With a number of important tweaks, the Industrial Accelerator Act can become a catalyst for industrial strength. Importantly, the Act must also be firmly embedded in a comprehensive industrial policy.”

ACEA’s position paper sets out a series of recommendations designed to ensure the legislation encourages investment while maintaining the competitiveness of European manufacturers. Among its key proposals are stronger incentives to make “Made in EU” manufacturing commercially attractive, a narrower geographical scope covering the EU27 and the UK while protecting existing investments in countries such as Turkey and Morocco, and a simpler, fairer methodology for calculating local content.

The association also calls for more realistic localisation targets for electric vehicle batteries, warning that battery production capacity is unlikely to keep pace with demand in some vehicle segments. It argues that the legislation should recognise the differing supply chains and operational requirements across passenger cars, vans, trucks and buses rather than applying a one-size-fits-all approach.

In addition, ACEA is seeking significantly simplified reporting requirements to reduce administrative burdens on manufacturers and their suppliers, as well as measures that properly recognise the value created through vehicle assembly, engineering and research and development within Europe.

The association concludes that while the Industrial Accelerator Act has the potential to become an important industrial policy tool, it must form part of a broader strategy that addresses Europe’s wider competitiveness challenges, including high energy costs, lengthy permitting processes, skills shortages and continued investment in battery production and manufacturing capacity.

Regulatory simplification, ACEA says, should remain a central priority as the EU continues to develop its industrial policy framework.