Ankara seeks wider talks on ‘Made in EU’ auto plan

Türkiye intends to sustain diplomatic pressure to secure the inclusion of its automotive sector in the European Union’s draft Industrial Accelerator Act, Trade Minister Ömer Bolat stated on Monday. Speaking after a meeting with key industry representatives in Ankara, Bolat emphasized that the proposed "Made in Europe" policy must acknowledge the profound industrial integration between Türkiye and the EU. The minister pledged that his ministry would continue collaborating closely with the sector to ensure Turkish manufacturers are covered under all provisions of the legislation. This effort follows recent developments involving a joint negotiating position between France and Germany regarding European production requirements, which Turkish manufacturers and suppliers fear could place their exports at a competitive disadvantage. The core of the dispute centers on the definition of European production within the draft act. The European Commission designed these rules to strengthen the bloc’s industrial base by incentivizing more manufacturing and sourcing within Europe. Consequently, the measures aim to compel foreign manufacturers seeking access to the EU market to produce more goods locally and rely on European suppliers. However, the current formulation of the proposal excludes non-EU nations such as Türkiye, Britain, and Morocco. These countries host vehicle production and supplier networks that are deeply intertwined with Europe’s automotive industry. Local industry groups and automakers operating in these regions argue that restricting the definition of Europe strictly to EU borders would damage supply chains that have evolved across the wider region over decades. Bolat noted that Ankara has engaged in intensive trade diplomacy over the past year. Last week, he held a series of high-level discussions in Brussels, stating that the European Commission initially proposed the legislation, though the final decision rests with the European Parliament and the EU Council. During Monday’s session in Ankara, officials from various ministries met with leadership from the Türkiye Exporters Assembly, the Automotive Exporters' Association, the Automotive Industry Association, and the Automotive Suppliers Association. According to the Automotive Exporters' Association, Türkiye’s automotive industry currently supports 250,000 jobs within the EU. The Trade Ministry issued a statement asserting that the "Made in EU" policy must respect the strong economic integration established by the customs union, which came into effect in early 1996. The ministry described the automotive sector as the backbone of this industrial relationship. Officials argued that any legislative approach aimed at boosting European competitiveness should not harm the investments and existing production networks of European manufacturers located in Türkiye. This stance has been communicated to EU institutions, member states, and industry representatives throughout the legislative process. The ministry highlighted that European carmakers and industry representatives are independently conveying to EU decision-makers the strategic importance of Turkish production and investment to the continent's automotive ecosystem. Specific technical details of the draft legislation include requirements for electric, plug-in hybrid, and fuel-cell vehicles purchased through public procurement or eligible for public support. Such vehicles must be assembled in the EU, with at least 70 percent of their component value, excluding batteries, originating within the bloc. These requirements also extend to financial support for corporate vehicles. The Commission notes that companies account for approximately 60 percent of new car registrations and 90 percent of new van registrations in the EU. While the draft generally recognizes content from customs union partners, Ankara contends that specific restrictions remain in the automotive provisions, necessitating further negotiation to ensure full coverage for Turkish producers. Major international automakers, including Toyota, Ford, Hyundai, and Renault, have also advocated for Türkiye’s inclusion. These manufacturers warn that excluding an established production partner could increase costs and weaken European competitiveness. Kazim Eryilmaz, a board member of the automotive suppliers' association TAYSAD, stated that Europe’s automotive industry is not composed solely of EU countries. He noted that Türkiye has been a vital part of this ecosystem for nearly fifty years, offering advantages in cost, quality, engineering, flexible production, and logistics. Eryilmaz cautioned that disadvantaging such an integrated partner while competing with China could elevate Europe’s own production costs and supply risks. Looking ahead, Ankara plans to intensify talks specifically with Italy and Spain to secure the industry’s inclusion. This strategy was outlined during the meeting chaired by Bolat. Officials and industry representatives agreed to expand their coordinated contacts in Europe to protect the long-standing production partnership. Discussions with France and Germany will also continue. Reports indicate that Berlin and Paris reached their compromise after French concessions on issues such as the EU’s 2035 vehicle emissions targets. Germany had previously supported broader coverage for countries integrated into European production networks. A European Parliament vote on the draft is expected in December, followed by inter-institutional negotiations after the Christmas recess. The legislative process could conclude in April 2027.