ACEA outlines stance on EU’s Industrial Accelerator Act amid industrial base concerns

The European Automobile Manufacturers’ Association (ACEA) has released a position paper on the EU’s Industrial Accelerator Act (IAA), endorsing measures to bolster EU manufacturing and reduce reliance on external regions for clean technologies. As negotiations intensify, ACEA argues the legislation must strengthen Europe’s industrial base while maintaining competitiveness. The automotive sector faces shrinking EU demand, fierce global competition, geopolitical instability, rising production costs, and stricter regulations, all while investing heavily in electrification to meet 2030 targets. “The risk of hollowing out the EU industrial base is real, and smart, targeted measures to support homegrown manufacturing are justified,” said Sigrid de Vries, ACEA’s director general. “With key adjustments, the Industrial Accelerator Act can become a catalyst for industrial strength—but it must be part of a broader industrial policy.” ACEA’s recommendations include ensuring “Made in EU” benefits outweigh localization costs, narrowing the act’s geographic scope to the EU27 plus the UK while protecting existing investments in countries like Turkey and Morocco, and simplifying “local content” rules to reflect the value added by European vehicle production. The association also calls for realistic EV battery targets aligned with actual production ramp-ups and tailored policies for different segments (cars, vans, trucks, buses) due to their distinct value chains and cost structures.