Mercedes chief warns EU that shutting UK out of its 'Made in Europe' rules would hurt both sides

Ola Källenius, the chief executive of Mercedes-Benz and president of the European Automobile Manufacturers' Association (ACEA), warned in Brussels that leaving the UK outside the EU's planned “Made in Europe” framework would weaken carmakers on both sides of the Channel.

Speaking during discussions on Wednesday, 14 October, Källenius criticised the prospect of restricting British participation in the scheme. The intervention puts Europe’s car industry at the centre of a wider political argument over how far the EU should reserve industrial support for production inside the bloc.

The proposed Industrial Accelerator Act would set European-content requirements for public procurement and some forms of industrial support. It is intended to strengthen Europe’s manufacturing base and support output in strategically important sectors.

For carmakers, the question is whether the UK will qualify under the proposed rules despite being outside the EU. Components made in Britain are used in vehicles assembled in EU member states, while British factories rely on engines, batteries, electronics and other parts produced in continental Europe.

EU governments are divided over the terms. Germany has backed a broader model under which selected trading partners could qualify if reciprocal conditions are met, while France has favoured stronger preferences for production within the EU.

China’s expanding manufacturing capacity, particularly in electric vehicles and batteries, has become the main focus of concern around the Industrial Accelerator Act.

After an ACEA board meeting on Wednesday, European manufacturers called for quicker movement on the wider automotive legislative package. In a statement dated 14 October, ACEA urged EU institutions to advance negotiations so the package could be finalised early next year.