European auto industry seeks safeguards for Morocco operations in EU manufacturing plan

Europe’s leading automotive industry association is urging European Union lawmakers to protect existing investments in Morocco as they finalize a proposed industrial policy designed to strengthen manufacturing within the bloc and reduce dependence on foreign supply chains.

In a position paper reviewed by Hespress, the European Automobile Manufacturers’ Association (ACEA) called for safeguards to ensure the proposed Industrial Acceleration Act does not undermine European manufacturers’ operations in neighboring countries, particularly Morocco and Turkey.

The proposed legislation aims to bolster Europe’s industrial base, accelerate the transition to clean technologies and strengthen the resilience of strategic supply chains.

ACEA said it supports the bill’s objective of reinforcing manufacturing within the European Union, warning that the bloc faces a genuine risk of industrial decline.

However, the association argued that the draft legislation, in its current form, could disrupt existing automotive value chains and jeopardize investments already made by European manufacturers.

“We need a pragmatic implementation plan that strengthens the EU industry rather than weakens it, and protects existing investments and jobs rather than destroying them,” the association said.

ACEA noted that Europe’s automotive industry is undergoing a major transformation as it shifts toward zero-emission mobility while facing rising manufacturing costs, slowing consumer demand and increasing global competition.

While acknowledging that prioritizing production within the EU is a legitimate policy goal, the association said such measures should be introduced gradually and include targeted exemptions.

Excluding existing manufacturing facilities operated by European automakers outside the EU could freeze investments and weaken the industry’s competitiveness, it warned.

The association called on lawmakers to introduce incentives that would offset higher production costs associated with localization requirements.

Among its proposals are enhanced regulatory credits for battery-electric passenger cars and vans under EU carbon emissions rules, as well as direct financial support to public authorities purchasing EU-manufactured trucks and buses.

ACEA also urged lawmakers to measure European content based on the value of finished vehicles rather than individual components, arguing that vehicle assembly, engineering, research and development, and skilled labor generate substantial value within Europe.

The organization further recommended granting the United Kingdom treatment equivalent to EU member states under the legislation, citing the highly integrated automotive supply chains that continue to link Britain and the European Union following Brexit.

Regarding Morocco, ACEA specifically called on EU policymakers to recognize existing manufacturing operations in neighboring countries that are closely integrated into European supply chains.

The association said industrial policy instruments should acknowledge current investments in Morocco and Turkey to avoid undermining projects established under previous regulatory frameworks.

ACEA also argued that the legislation should distinguish between different categories of vehicles, noting that passenger cars, vans, trucks and buses operate under different development cycles and supply chains.

The association said broader structural reforms remain necessary to restore Europe’s manufacturing competitiveness, including reducing energy costs, accelerating permitting procedures, addressing labor shortages and maintaining investment in battery production.

Sigrid de Vries, ACEA’s director general, said the European automotive industry is facing shrinking demand, intense global competition, geopolitical uncertainty, rising production costs and growing regulatory requirements while simultaneously investing billions of euros in the transition to electric vehicles.

“With some important adjustments, the Industrial Acceleration Act can become a catalyst for industrial strength,” she said, adding that the legislation should be embedded within a broader industrial strategy.